I work in the insurance business. The company that I work with knows the credit scores when we mail our direct marketing material. Therefore, when someone calls in, I already know their credit score. From what I know, it could be from either of the three CRAs. In California, more than any other state, the scores are always usually 690 or higher. Occasionally, like once a month, it may be lower. I was wondering if any of you know why this would be? Because in other states the scores range very greatly. Is there something in Ca. that could be different?
They are requesting a list of names from the cra's for people with scores of 690 or better. (most likely)
I am not sure if they can do that. Because in all other states they don't. And I do sometimes see scores that are lower. Also in California, whether a person has a 550 or a 750, it does not affect the premium. But say in NY, if some has a 550, they could be quoted thousands higher in the rate.
I don't know why the credit scores all come in the same, but Proposition 103 really eliminates credit from the picture in CA. I think that because of Prop 103, they are requesting a list of consumers with higher credit scores, because they cannot rate the applicants as they would in any other state, they must rate by Prop 103 guidelines. So, the end result is that they are only soliciting business from consumers with higher credit scores. Those with lower credit scores who just happen to apply, get rated under 103, and get preferred rates even though their credit scores are low. From the rates I am hearing, most companies just jacked their preferred rates across the board in CA because of 103. In NY, PA, FL, AZ, CO, etc more use of credit as a premium determinant is allowed by state law. A couple of those states allow credit as the only determining factor in rating.
