Here's a credit scoring article that I thought was pretty interesting. Charlie http://cbs.marketwatch.com/news/sto...f&guid={97C9F023-23DA-4BA7-8DF1-47024DD9F511}
Here's a good point from the article: "Borrowing is one thing -- you understand they'll look at your credit history for a mortgage or car loan," she said. "But when you're buying a commodity product or a monthly service like a cell phone, what right do they have to screen your credit when they can cancel you the moment you don't pay?" Hubby's got pulled for Voicestream 2 years ago. BTW, legislature is in the works in Texas captial to outlaw using credit scores for homeowners insurance. It all started with Farmers Insurance debacle and Texas suing them earlier this year.
Perry and Sanchez used it in their political advertisements. Allstate started pulling CR's in Texas on July 1. Charlie
status of state legislative efforts http://www.geocities.com/insurance_credit_scoring/index.htm sorry it's too big to put here. This gives each state, what attempts have been made to control the use of credit, and the current status. Consumers need to apply pressure on state legislators!!
I used to work for a large auto insurer. And credit was a major factor in calculating premiums. It can mean a difference of paying $500/yr or $1000/yr. It was argued that responsible consumers are responsible drivers. There may or may not be a strong correlation but the CR was pulled for each quote request and used to determine premium.
How long did you work for them: Would you believe there are many secrets about the industry that they never reveled to you? How do I know ? See my resume preceding my signature below. It seems people are now begening to see the effects from what I learned 18 years ago.
1*In other words, the lower your insurance credit score, the more likely you are to file claims, inflate claims, commit fraud and commit arson 2*The bottom line is that consumers are losing this ballgame and when it comes to insurance required by law, the insurance industry shouldn't even be allowed to play the game. 3*The insurance industry claims that the use of these scores helps them to issue new and renewal insurance policies based on objective, accurate, and consistent information; and to streamline the process, better anticipate claims and better control risk. This enables them to offer more insurance coverage to more consumers at a fairer cost. CREDITNET | Straight Talk | | Credit Scoring Article ====================== 1*How can you come to this or any other conclusion by using scores gleaned from credit reports that have a 70% inaccuracy rate? 2*Nothing like states passing laws to force the populace to do business with shysters is there? 3*How does over charging 70% of their customers substantiate this claim? What's fair about that? What's accurate about false info. in credit reports? LB 59
That article does bring up many good points. The same points that lead many of us here. The fact the credit scoring system has flaws. Also, I've heard that mortgage companies actaully punish borrowers who pay off early. Not in the way of prepayment fees but higher interest. They assess a person's credit report and if they have a history of paying fast/often/early they are given a higher rate. Think about...a bank wants an individual to pay on-time for the entire length of the loan, thus maximizing profits. If a consumer continually pays loans early and with above minimum payments they stand to lose money to that customer, potentially. So even great paying customers are dinged. J
A scam is not a system quote: -------------------------------------------------------------------------------- The fact the credit scoring system has flaws. -------------------------------------------------------------------------------- Ooopps. That was a newbie mistake. Sorry.
