Credit reporting companies (or credit bureaus) do not know where you use your credit and debit cards. They only get summary information about how much you’ve borrowed and how you’ve repaid. However, they can see some information that will hurt you.
When you apply for a new loan and the lender pulls your credit, they won’t know anything about your credit card transactions. Furthermore, those transactions do not affect your FICO credit score - the most commonly used credit scoring model.
That said, your bank knows where you use your card and how much you spend. Banks have been accused of cutting credit lines in the past based on transaction data (frequent use at pool halls and bars, for example). Therefore, you might want to avoid using your credit card in certain places if you’re worried about your credit limits.
Some claim that credit report entries from ‘finance companies’ (such as rent-to-own establishments) can negatively affect your credit. If you want to be extra careful, avoid financing furniture purchases through the store's finance company.
To learn what's really important, find out how credit works:
Return to the main page on factors that affect credit.
