I hve gotten a call from the CC company (this is before is tarted getting myself out of debt ) , i hadn’t used my card in some time and i used it often within a few days. They called to verify that It was myself who was making those purchases. I was glad that they did that. Because obviously if it was someone who had used my card and i didn’t know, it would have been brought to my attention this way.
I have mixed feelings about all of it. I feel, ultimately, though, that the credit card company needs to be responsible enough when screening potential card holders and when issuing the limits, that they should be able to head this problem off at the pass.
Odds are, they did as they usually do——send out cards to those who they KNOW have less than satisfactory credit. For instance, after I filed bankruptcy, I got countless credit card offers from companies for cards. I laughed and decided to myself that thye should not offer me a card, and that they must not know my credit history. But, lo and behold, when checking my credit report for “promotional inquiries”, indeed these companies HAD checked my credit and DID know my history. If they are going to offer me a card anyway, then THEY are being IRRESPONSIBLE.
Or, if the customer with the card is a young person who has never had credit before—-start his limit off VERY LOW in the first place, to avoid this. If they get to their $200 limit too fast, there’s not as much risk and you’ve cut the overspending off before it could get started.
I understand what you’re saying, though, Karolina. As the credit/office manager here at my company, I have seen this scenario so often: A new company sets up an account, in which I intend to watch his trend and limit. Often, they run their balance up within the first month, making one purchase after another. Of course, the owner of the company over-rides my objections, seeing dollar signs, and lets them continue, without knowing what sort of payment trend they have. Then—guess what—-they suddenly stop buying and skirt off to another vendor, and do not pay me. I’ve had it happen so many times—-and all times, credit was extended inspite of their swift spending, despite my objections. There have been several like that in which we have had to “write-off” their debt—–and I’m talking about some of them in the 20,000 dollar range. I finally had to start, when opening the account, putting it in writing that the account was being approved by the owner, against my better judgement. That way, the burden falls onto the owner for the decision.
So—-I agree with you in that regard. With most of my customers, I am able to cut them off if they look “iffy”—–so the same principle would and could apply to credit cards.
I’d like to know who the blogger’s credit card company was—–because I feel like you do. If they would monitor accounts more carefully, it would help to ward off those fees for being over-the-limit.