American Express considers some stores "risky"

September 28, 2009 8:45:04 PM PDT
Credit card companies are trying to weed out risky credit card holders and apparently one way is where you shop.

MOST POPULAR: Video, stories and more
SIGN-UP: Get breaking news sent to you from ABC7 News

Kevin Johnson has always paid his bills on time, but he saw his credit limit cut by American Express from over$10,000 to $3,800. American Express explained it this way in a letter to Johnson: "...other customers who've used their card at establishments where you recently shopped have a poor repayment history with American Express."

"I was shocked when I read it because I didn't know that companies could assess your credit worthiness based on others around you," said Johnson.

So if you've been shopping at high end or middle tier retailers and suddenly spend your money at a bargain store, that apparently makes you a credit risk.

American Express, however, says it still considers your debt level, payment history and credit scores first when judging your credit worthiness.

       Today's latest headlines | ABC7 News on your phone
Follow us on Twitter | Fan us on Facebook | Get our free widget


Load Comments