I don’t know what it is with credit card companies, but they do some awfully dumb things. Credit card issuers have automated the entire process of extending a line of credit. Even with the massive credit crunch this country has experienced, banks are still issuing credit cards to anyone, and when I say anyone, I mean ANYONE.
A Mother was shocked when she experimented with her 6 year old boy applying for a credit card. He filled out the entire application himself and filled out the application truthfully. He filled in $0 for his income, “other” for his residential status rather than owner/renter, and signed his name that looked exactly like a 6 year old’s handwriting. Come to find out a few weeks later, he was issued a $600 credit limit from the Bank of America. How did this happen? This happened, because Bank of America only screens about 3 or 4 out of 10 applications. The ones that aren’t looked at are automatically issued a credit card.
Think you spend a lot of money eating out? Think again. A guy from North Texas received his credit card bill and saw that the balance due was $23,148,855,308,184,500.00. No, I didn’t write that wrong. The credit card charged him 23 quadrillion dollars for his meal at Five Sixty, a fine dining restaurant owned by Wolfgang Puck. Now that’s a programming error. The error was properly corrected, of course. But that bill would ruin anyone’s day!
I am sure I could come up with hundreds of more of these stories, but we all know that credit card companies simply don’t care who they extend credit to. Not only do I think credit cards are dumb financial “tools”, this kind of stuff just makes me laugh at them. The very people that beg and plead to the federal government that they are being hit hard by the economy and they need a bailout, are the same ones that extend credit to kids, dogs, and dead people. It’s crazy. When will these credit card companies start taking their lending practices seriously? Credit cards have become a joke.