Comments | the_recession: Use Your CC at Wal-Mart, Lower Your Score?

cieldumort in the_recession

Use Your CC at Wal-Mart, Lower Your Score?

Feb 02, 2009 23:50

Mother Jones:Today's Two Minutes HateHere's the latest reason to hate credit card companies: Shop at Wal-Mart, obviously a sign of financial distress, and your credit limit gets lowered. Hallelujah ( Read more... )

credit cards, american express, wal-mart

Comments 18

badnewswade February 3 2009, 19:15:07 UTC

People who use credit cards to get credit are on a hiding to financial oblivion. Get an overdraft or go on welfare or something, but don't borrow money at double-digit interest rates, that's totally insane!

cieldumort February 3 2009, 20:02:08 UTC

It's only double digit if you pay attention ;)

(The comment has been removed)

cieldumort February 4 2009, 20:40:33 UTC

Mind (or lack thereof) over matter...

fischlehrer February 4 2009, 03:10:18 UTC

It's funny because at the same time, credit card companies have been offering reward cards all over the place. Every frigging company I do biz with want to give me a reward based CC. Now I have good credit but still. If I used all my available credit I could buy a small house (Maybe in Toledo, Ohio) which I can't actually afford anyway.

I've also read that the reward systems are being slowly reduced. Airlines are requiring more miles. CC rewards are reducing the value of the points etc.

On the flipside, if someone is using their CC to shop at Walmart, the companies figure they are broke, likely lost their job and will likely default on the amount owed. Not that it's fair but I believe that's their reasoning. Walmart is an odd place to use a CC. UNless you are trying to earn frequent flier miles to Hawai.

cieldumort February 4 2009, 20:37:37 UTC

I think that people spending their credit limit at any store is a person's choice, for whatever their reason(s), and should not in any way automatically affect their credit score. It's absurd. Wal-Mart,companies like it, and the ACLU should be having lawyers all over this.

fischlehrer February 5 2009, 02:08:30 UTC

Well here is the thing. If credit card companies issue credit to us all and many of us default on our "loans" then who pays for the losses? Do the Evil Credit Card companies eat the bad loans? And if the CC companies are for profit with those pesky shareholders (Who may be your and mine pension funds or IRAs or 401K vehicles) won't the pesky shareholders get a little pissed off for having so many bad loans and low dividends and stock prices falling ( ... )