In the age of everything from constant Twitter updates to Wikileaks, it seems as if nothing is kept private anymore. In fact, this lack of privacy is clearly apparent within the world of credit cards. While most people would like to believe that how they spend their money is their own private information, in reality, big brother (AKA your credit card company) is always watching. That’s right; practically every purchase you make on your credit card is scrutinized by your credit issuer. This is because credit card companies are constantly searching for patterns in spending histories that might shed some light on their customers' financial stability.Of course, no one purchase should cause your credit card to suddenly be deactivated. But if a customer's purchases repeatedly suggest a form of financial instability or irresponsibility, credit issuers can lower that person's line of credit or even close it entirely. So what sort of purchases should you avoid putting on your credit card so this won't happen to you? Here are the top three charges to keep your credit card away from, unless you liked the feeling of having your allowance taken away from you as a kid.
1.) Alcohol
While you shouldn't ever have to worry about charging a few brews with the bros at the local bar, if you're racking up a mondo tab every night, then this could raise a few red flags. Habitual purchases from liquor stores are even more cause for concern amongst credit card companies, as they know that alcohol dependency can often be a sign of irresponsible financial behavior in the future.
2.) Cash advances
While this is a service provided by credit card companies, cash advances can always draw extra attention to your account. If you've got a poor credit score to begin with, credit card companies do not like to see a person abusing their credit by making repeated cash advances.
3.) Gambling money
You know and I know that there is nothing quite like laying down that straight-flush on the Hold 'Em table, but to the credit issuers, seeing habitual charges to the local casino will never generate confidence in your financial responsibility. Would you loan your uncle money to spend at the casino or buy lotto tickets? Neither would a credit card company. We're not saying you should never gamble, just make sure you don't do it with borrowed money.
So, avoid the headache and simply use cash or a debit card if you need to make any of the purchases listed above, otherwise you might wake up one day and find the credit card in your wallet has become completely useless! The confusing practices of credit card companies can often catch you off guard. If you'd like more tips about how to keep your credit in order, visit our credit learning center. Knowledge is power, especially when it comes to your own hard-earned money!
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