Monday, August 25, 2008

Don't buy used tires with credit!

casingsI could have sworn I wrote about this a month ago but the archives are proving me a liar.

MSN has an article on how certain purchases can negatively affect your credit - even if you pay off your bill completely each month:

"Most borrowers know a late payment or high outstanding balance can hurt their credit. But what about frequenting a massage parlor, retreading a tire or visiting a marriage counselor? Such activities count, too..." Story: Your lifestyle may hurt credit score

It seems psychologists (or possibly sociologists with graphs) are red flagging certain spending patterns. A customer repairing a tire rather than replacing it could be broke and possibly stop paying their bills soon. A marriage counselor may indicate imminent divorce and imprudent spending as one household becomes two. Although a divorce could be avoided through the purchase of exorbirant diamonds like that basketball player got his wife. Either way - its debt which may not be repaid.

I wish I knew massages were deemed "bad" purchases before charging one last week. Its a good thing it was on a card I plan to close soon ;)