Marketers are always looking for clues to your buying habits. They’re also trying to figure out how much money you have to spend. They want to know how reliable of a customer you are, and they need little clues to figure out which financial class you are in. If you’ve ever gone to a website to check your credit score, you probably noticed it was full of advertising. That’s because credit scores are used to market. More than likely, some of those advertisers will be sending you invitations to use their services.
Credit got this country in some serious financial trouble, but we are a nation of people with a very short memory. It only took a new job and that first paycheck for us to fall right back into our old ways. Financial security just isn’t something we want to deal with. That means that people with bad credit scores are as desirable to some marketers as people with good credit scores. Ever known someone, or been that someone, who has a poor credit score? Ever notice that those people seem to get the most junk mail trying to get them to open a credit card account? There’s big money in bad credit. The lure on the marketing piece will be something like zero percent interest for one year. The promise will be for something prestigious, like a platinum card. When the person fills out the application, what will come back is a very small credit limit with a very high interest rate. Someone irresponsible enough to get in credit trouble will take the deal anyway. The interest will be where the bank makes its money.
As your credit score improves, so will the offers. The quick loans for $5000 at 27 percent interest will disappear, and Platinum American Express will take their place. So will deals for time shares and cruises. You’ll probably also get a free copy of some high end glossy magazine asking you to buy a two year subscription. Ultimately, your credit score is not only good for you, but it’s good for marketers, too.