Do you believe that your credit card company knows much about you, or are you hearing that for the first time? If it’s your first time, then you should start believing from this moment that they know more than you think. That is possible because you provide them with all the relevant information that gives them access to how you use your credit card. Additionally, your frequency of using the card also says a lot about you.
Should it be said that it’s a breach of privacy?
Some people may view access to their information by credit card companies as a breach of their data privacy. However, that’s just a negative perception about it. The chances are that they have never wondered why the companies need such information and what they use them for. They need to know that the companies don’t take their data for other reasons apart from the ones listed below;
To build trust
When applying for a new card, the credit card companies need to know if you are worth their trust or not. They may assess that through your past payment history. If they find out you pay your credit in time, they will believe you. That will also grant you access to a higher credit limit. Therefore the advantage will be majorly on your side.
The companies also value your information, especially those related to your credit card, because it enables them to know your usage frequency. That helps them know whether your credit is in your possession or stolen. It also allows them to determine if you are an active user or not.
What exactly do they know about you?
Below are some of the things you may not believe your credit card company know about you. Read keenly to understand since they are interesting facts.
1.How responsible you are
Even though they don’t visit you in your home, the companies can know the kind of person you are, primarily through your credit card purchases. From that, they can see whether you are a responsible parent or not. Additionally, they can know if you are a careless homeowner or a responsible one.
2.Your payment history
How you pay off your debts determines how reliable you are. Credit card companies value your payment history because it allows them to put you on a weighing scale.
If they realize you always pay off your credit card debts in time, they will know that you are their ideal customer. However, if you are consistently paying off your card debts late, they will undoubtedly withdraw their trust from you.
3. Your credit score
Almost every credit card holder knows about this. That is because it’s an obvious aspect that every credit card company must consider before they issue you with a new card. They will extract your payment history from the bureaus that have them. From there, they will analyze the kind of customer you are.
Having a credit card is a good move, especially if you are a frequent purchaser. Furthermore, a credit card can always help you in times of need. Therefore you need to be a good credit card holder so that the card companies do not have a bad history with you.