Has anyone ever heard of particular attention being paid to the first purchase made on a credit card?
I vaguely recall hearing that the first purchase you make on a credit card is used by the company to help build a spending profile or determine spending limits, or such. Is there any truth to this?
I'm going to venture the guess that this notion is pure unadulterated horse crap, but I got nothin to back that up
kngspook
New Member
posted: Aug. 31, 2009 @ 1:51a
I'm not sure if you're referring to what I asked about or the responses it elicited. If you're referring to the latter, I more or less agree. If you're referring to the former, I found out at another venue that there are things referred to as "first purchase models" where they try to do behavioral modeling based on your first purchase, usually for the purpose of credit line increases.
I'm still looking for more information on this now.
airblade
Handsome Member
posted: Aug. 31, 2009 @ 1:55a
Cardiologist bill.............
retmil
Senior Member
posted: Aug. 31, 2009 @ 2:04a
kngspook said: I'm not sure if you're referring to what I asked about or the responses it elicited. If you're referring to the latter, I more or less agree. If you're referring to the former, I found out at another venue that there are things referred to as "first purchase models" where they try to do behavioral modeling based on your first purchase, usually for the purpose of credit line increases.
I'm still looking for more information on this now. Sounds like the other venue is creditboards. If you think you need to worry about whether your fist purchase is at Starbucks or McDonalds then use a credit union card. I'm sure all the big issuers have some kind of behavioral models. The responses here probably mean it doesn't matter what they do behind the scenes as long as the credit keeps coming.
kngspook
New Member
posted: Aug. 31, 2009 @ 2:21a
retmil said: Sounds like the other venue is creditboards. If you think you need to worry about whether your fist purchase is at Starbucks or McDonalds then use a credit union card. I'm sure all the big issuers have some kind of behavioral models. The responses here probably mean it doesn't matter what they do behind the scenes as long as the credit keeps coming.
Yep, it is (creditboards).
How do you know credit unions don't care?
retmil
Senior Member
posted: Aug. 31, 2009 @ 2:37a
kngspook said: How do you know credit unions don't care? I don't. I have seen the first purchase models talked about with some major issuers like AMEX and Citi but not Cu's . Get a prepaid card if you are that worried about it.
I've heard that they know that you know about creating a lifelong spending profile based on your first purchase, so they now use the second purchase. Be very careful with that one...
ThePessimist
Ancient Member
posted: Aug. 31, 2009 @ 9:41a
The idea of building up a whole profile based on the first purchase would just make for an absurd business practice. Many issuers have openly admitted that they have behavioral models based on ongoing purchase patterns, or changes in purchase patterns. That makes sense to me. But how much can you learn about a person from the first purchase?
When I got my new Chase Freedom Exclusives Card, I activated it and put it in my wallet. I only carry one Visa at a time, so it was now the only Visa card in my wallet. It so happened that I had to take my cat on an emergency trip to the vet, and since the vet doesn't take AMEX, I used the Chase card. So what? If it hadn't been for a sudden case of conjunctivitis, the first purchase probably would have been at a restaurant. There's just too much chance involved for the first purchase to be meaningful.
I know people talk about first purchase models, but people talk about all sorts of hoaxes. What possible benefit would it be to the issuer to do this?
retmil said: 6. harley dealer 7. any purchase in CA, FL, NV, or AZ
I have spent nearly 90% of my life (if you don't count time out of the country) in two of these states.
sethdallob
Senior Member - 1K
posted: Aug. 31, 2009 @ 9:56p
I don't think they watch the first purchase, but they definitely watch the first month. I recently got a card with a $15k CL that I decided to move some serious transactions through. When I got close to $10k in charges within the first 2-3 weeks, I got sliced to $11.6k CL, citing "recent usage patterns."
On the other hand, I have another CC with a $20k CL that I used the same strategy with, and now I push through almost twice that a month, and I've never got a fraud lock or so much as a peep from them.
kngspook
New Member
posted: Sep. 2, 2009 @ 2:14a
What I'm hearing is that different banks use different strategies, and some use the same strategy for different things (ie. some use first purchase models just for fraud prevention, others use for CL stuff). That also seems consistent with your experiences.
Two companies that provide these services to banks/credit cards are First Data and ALI Solutions.
kngspook said: Has anyone ever heard of particular attention being paid to the first purchase made on a credit card?
I vaguely recall hearing that the first purchase you make on a credit card is used by the company to help build a spending profile or determine spending limits, or such. Is there any truth to this?Pay your utilities by card, if there are no surcharges for that (my electric co. wants an extra $8 plus 3%), because it's hard to go wild on electricity, gas service, and water.
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