Every time when you use your card, the transaction is estimated to assess the risk of fraud. While you are buying, they are assessing how much you are spending and whether it coincides with your normal consumption. Atypical consumer behavior creates an alert that your card may be stolen.
‘Points of Conduct’
Credit scores assess if you settled your obligations on time, while the points that track your behavior measure where and how you spend your money, whether you pay the entire amount or in installments, are you are using the minimum or maximum number of installments, and whether you pay your debt on time. Credit house that issued the card with the help of these points can detect whether the failure to pay on time is rare in your behavior or is it your regular behavior that might encourage them to call you every day with the question of when you think you will pay?
“Points of Conduct” will alert the card issuer that maybe there is something wrong if they notice a change in consumption behavior – for example, increased number of loans or visits to the casino. Credit scores and scores of Conduct card issuer are used to create a profile of a client.
Some banks in the world send them to agencies that monitor the behavior of their customers – where they buy, how often they withdraw money from the card, and how much and where are they buying.
The delay in the direct bank deposits
, for example, could alert them that you are unemployed. If the “points of conduct” are high on your profile, it is a good indication that the client could soon find a new job, and the client could get an offer to postpone the payment of the loan. On the other hand, if the “points of conduct” are low that could indicate that the customer is delayed in finding a new job, and the bank could take action against him.
Assessment of income
Regulation concerning the issuance of credit cards, which date back to 2009, require banks to assess whether the applicant is capable of paying the bill and the banks are allowed to use analytical tools to guess the clients income.
So, if you become a proud owner of a credit card, be sure you’ll be under observation.
Assessment of Wealth
Another factor that determines how much debt you are able to pay off is the total wealth- savings and other assets. Banks use this information to provide the services that we believe will fit your consumer profile.