Credit Card Companies Aren’t Providing Credit Scores For YOUR Benefit
Image courtesy of hin255 / FreeDigitalPhotos.net The credit card companies are at it again. Remember, these are the same companies that think you’re so stupid that they actually created a commercial that suggests it would be a great idea to buy things for your friends just to earn credit card rewards. What are they up […]
Image courtesy of hin255 / FreeDigitalPhotos.net
The credit card companies are at it again. Remember, these are the same companies that think you’re so stupid that they actually created a commercial that suggests it would be a great idea to buy things for your friends just to earn credit card rewards. What are they up to now?
Credit card companies are offering to give you your credit score for free.
On the surface, it sounds like a good deal for consumers. Obtaining your credit score will usually cost you somewhere around $20. The credit card companies are doing us such a nice favor by providing us our credit score each month for free, right? Wrong.
The credit score industry has thrived on the fact that the formula used to calculate your credit score is more closely guarded than the recipe for The Crabby Patty in SpongeBob Squarepants. It’s calculated based upon our actions, and is something that can decide whether we can borrow money for very important purchases such as a car or a house.
Thank you, credit industry, for FINALLY giving us something we should have anyway.
Oh but wait, it get’s better. Remember, not just anyone can get free access to their credit score. It’s only available to people who have a credit card. Thus the people that are able to see their credit score for free are likely accustomed to buying things with credit. According to a so called financial planner in this article, this is fantastic news because consumers “should be watching that score and asking how they could improve it.”
The number one way to improve your credit score is to USE MORE CREDIT.
We have finally arrived at the motivation behind credit card companies want to provide your credit score. It’s a self-serving method to squeeze more money out of consumers, and create more profits for them.
If you have a high credit score, the message to you is simple: If you want to keep your nice and shiny credit score, you have to keep using credit. Even if you pay your balance in full each month, merchants pay a fee for each credit card transaction. You keep using your account, credit card companies keep getting paid.
If you have a low credit score the message to you is this: Make your payments on time, oh, and keep using credit. Think about who may fall into this category. If you have a low score, you likely already have a high revolving balance, have missed a few payments, and your interest rate is sky high. High balance, and a high interest rate; from a profit perspective, who better to try to get to use MORE credit?
If you don’t have a credit card that will provide you with your credit score (not all do), why not get one? When that piece of plastic shows up in the mail, chances are you will use it at some point, which means more money for them.
I’m not trying to tell you not to use credit cards. That’s a decision everybody should make themselves based upon their own personal situation. I just want to ensure you know that credit card companies are not providing your credit score as a favor to you, or because they like you. The credit industry is a self-feeding machine. If you want a good credit score, you have to use credit. If you want to keep a good credit score, you have to use credit.
This is just them encouraging you to feed the machine.
- Published On : 5 months ago on June 17, 2017
- Author By : Ben Fowler
- Last Updated : June 26, 2017 @ 7:13 am
- In The Categories Of : Credit, Invest