Did you know that someone always knows where you are, what you’re doing, or even what you’ve had to eat? No, I’m not talking about your latest status update on Facebook, nor your twit pics and tweets; I’m referring to your debit card/credit card issuer. What’s trending now is that banks, credit card companies, and even your regular retailers, are following your trends; (not creepy-like at all) and believe it or not, they have your best interest in mind.
We all like the idea of saving, better yet earning while we are spending. But have you ever thought about how they know that you’ve bought $50 in gas, and did not spend $50 on shoes? I’ve come to notice that there are blatant tracking tactics which we never seem to mind, such as cash back on credit purchases in specific categories like gas or grocery. (See, still not creepy).
Are you aware that there are also more subliminal strategies designed to know what you want even before you do? (Still no need to worry), in retail we call that consumer behavior predictive analytics and we marry that concept to direct marketing. Earlier this year, I received an email with suggestions as to how I should invest the deposit that was rather irregular from my standard direct deposit. Okay, at first it was a tad bit eerie, however it did strike me that I have options and I did want to do something about that deposit, so I was glad that my banking center reached out. Through our purchases, retailers can identify our demographic, our style, and our weight on brands and value. Using this information, they’re able to solicit coupons and direct mailers to lure us right back into the store. The New York Times also has an article on Target being able to identify pregnant women, and solicit coupons before they’ve even announced their pregnancy! Alright, I must admit, that is creepy.
So why are banks, credit card companies, and retailers investing so much time and money into figuring out what we want? Over the years, credit cards and financial institutions have made a bad rep for themselves with the mammoth credit limits, fine print, variable interest rates and much more. However, for the first time its ranking in national debt has been surpassed by student loans. One can ask, are people taking out more student loans, or are we truly spending less? It has been up for debate that people are spending less because of fear of the state of the economy and incurring more personal debt. However I’ve observed that our nation’s economic state causes people to lean on the credit card crutch since their cash on hand becomes scarcer. Overall, the national debt has decreased and there has been laws instated to keep the consumer informed, and spending wisely. Credit card companies are now responsible for telling consumers how long they will be paying off their debt, and how much interest would have accrued if only the minimum payment was made. We owe it to ourselves to remain educated about our spending and keep in mind that credit cards are financial tools when exercised properly not the bane of our existence as we charge them to be.
Coretta T. Nicholas
Coalition for Debtor Education 
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