Credit scores are a clear indicator that credit card companies and lenders are watching you. They are paying close attention to your payment history, how much debt you’ve incurred, your debt-to-income ratio, and more.
While we’re not saying big brother is real, it is real that credit companies and lenders are watching you carefully. Unsurprisingly they’re not just using your credit report to look at what you’re up to.
Business Insider took a look at how else these companies are looking at what you do, and in some cases, don’t.
If you think it’ll stop once your debt goes to collections, you’re wrong. Collectors will actually look at how likely you are to pay off your debts which will then determine how much they contact you to settle your debt.
Credit lenders will also use your history and score to determine how likely you are to file for bankruptcy. The process is similar to the one they use to determine if you’re a risky borrower or not.
While most lenders will mark if your payments are on time and how much you’re charging on your cards, they will also note other behavior. If you pay off your cards they may raise your limit in order to get you to spend more; if you don’t use your card they may even charge you an “inactive fee”. They might also look at how and where you’re spending your money as a way to sense any behavioral changes.
All these insider intelligence work is not meant as anything malicious, but it does put lenders at an advantage. Remember that you’re in charge of your financial history and future, so check your credit reports and think about these other “scores” next time your lender sends you any sort of new reading material in the mail.