Although their tag line is 'don't leave home without it', you may soon find that it's not worth the trouble. Heard an interesting story on NPR's All Things Considered yesterday--American Express has been quietly engaging in 'credit profiling'. They're allegedly using a number of factors including a cardholder's neighborhood, mortgage bank and even where they shop to determine whether or not to decrease credit limits. According to the folks in the story, Amex is lowering their limits as soon as they pay down their bill.
Although I haven't received one of the letters described in the story, I have noticed that every time I shop at Target, there are extra steps, ranging from keying in digits on my card to phoning for an authorization code to a downright rejection yesterday because of 'security considerations'. Makes you wonder if saving $$ at Target will lower your credit limit...
Click here for audio of the entire story.
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