It's pretty common knowledge that credit card companies track your credit score to evaluate your credit-worthiness. But do you know just how far they go to avoid risk, especially in today's economy? American Express lays it all out for us.

There was a story over at MSNBC about a guy who received a letter in the mail from American Express letting him know that the company had reviewed certain factors and decided to lower his credit limit. Aong the listed reasons for this happening are:
 

• He was making transactions at unspecified places where AmEx had had trouble in the past with an unspecified amount certain un-named customers.
• The institution from where he received his loan was considered unsatisfactory to the company.

 
On a follow up with an American Express spokesperson we are indeed basically told that if American Express doesn't like the cut of your jib then they can do whatever they darn well please.
 

American Express spokeswoman Kim Forde confirmed that the company is analyzing its exposure to risk more closely as it reviews its cardholders’ credit profiles, including considerations it has always weighed — from payment history to credit bureau reports and income. But, she said, “We are looking at some other factors, too, in light of the economy. We are looking at consumers holding sub-prime mortgages (and) those living in areas where there has been a greater deterioration in home prices.”

Well, there you have it folks: the card companies, amongst other institutions, are watching your every move and acting accordingly. Watch your back!