Do Credit Card Companies Gather Information about You
<!-- @page { margin: 0.79in } P { margin-bottom: 0.08in } -->
Credit Cards have been termed by many as the new age money. The huge acceptance world wide and the convenience to shop with them have found millions of takers for credit cards world wide. Companies provide various offers and easy finance on credit cards to urge customers to spend more by offering cash back and reward points. Credit Card companies are in a high risk business as they extend credit and thus they do gather information about their customers. Many debtors seeking Debt Relief do ask if Credit Card Companies gather information about them.
When a customer fills out an application form for a credit card the company might ask for your credit report to inspect your profile and payment history. The companies will also ask for information like bank accounts details, and household income, salary statement, proof of employment etc.
Today however the time has changed and as per latest law called the Credit Card Accountability Responsibility and Disclosure Act of 2009 the credit card companies are to ask for more details before issuing a Credit Card. So incase if you are concerned the Credit Card Company can gather information on the following:
The accuracy of information can be verified through computer applications.
Though most credit card companies use this information to determine if a new card can be issues or if your credit limit can be increased the information stored in the database can also be used in case of default. Also incase if you taking the help of Debt Relief companies for a Credit Card Debt Settlement and are negotiating for a partial amount pay off the information can be used to check the genuineness of the hardship you have claimed that you are in.
All credit card companies today maintain a huge database of its customers and their payment histories. The profile can be used in deciding if future credit from some other financial institution can be availed. Also the type of card issued to customer is fast becoming a benchmark in deciding the repayment capacity of customers and Platinum, Gold; Silver cards are issued based on customer's income details.
Debt Relief expert's advice not to apply for just every Credit Card but to keep one and make regular payments on the card.
Credit Cards have been termed by many as the new age money. The huge acceptance world wide and the convenience to shop with them have found millions of takers for credit cards world wide. Companies provide various offers and easy finance on credit cards to urge customers to spend more by offering cash back and reward points. Credit Card companies are in a high risk business as they extend credit and thus they do gather information about their customers. Many debtors seeking Debt Relief do ask if Credit Card Companies gather information about them.
When a customer fills out an application form for a credit card the company might ask for your credit report to inspect your profile and payment history. The companies will also ask for information like bank accounts details, and household income, salary statement, proof of employment etc.
Today however the time has changed and as per latest law called the Credit Card Accountability Responsibility and Disclosure Act of 2009 the credit card companies are to ask for more details before issuing a Credit Card. So incase if you are concerned the Credit Card Company can gather information on the following:
The amount you pay in mortgage or rent payments
Bank Balance
Investments
Total household income if you are married.
The accuracy of information can be verified through computer applications.
Though most credit card companies use this information to determine if a new card can be issues or if your credit limit can be increased the information stored in the database can also be used in case of default. Also incase if you taking the help of Debt Relief companies for a Credit Card Debt Settlement and are negotiating for a partial amount pay off the information can be used to check the genuineness of the hardship you have claimed that you are in.
All credit card companies today maintain a huge database of its customers and their payment histories. The profile can be used in deciding if future credit from some other financial institution can be availed. Also the type of card issued to customer is fast becoming a benchmark in deciding the repayment capacity of customers and Platinum, Gold; Silver cards are issued based on customer's income details.
Debt Relief expert's advice not to apply for just every Credit Card but to keep one and make regular payments on the card.
Source...