quote:

Originally posted by 1s1k:
I've never had any insurance ask what my credit score is.

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Originally posted by Scurvy:
People with higher credit are typically more well off and less likely to file a claim for damages that are slightly over their deductible.

People with low credit who likely need every dollar that can get are more likely to file a claim.

Example:

You sideswipe a pole and do $1500 in damages. You have a $500 deductible.

The higher your credit score, the less likely you are to turn in a claim for that.

quote:

Originally posted by PD:

quote:

Originally posted by 1s1k:
I've never had any insurance ask what my credit score is.

They don’t ask you. They just look it up.

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Originally posted by ridewv:

quote:

Originally posted by Scurvy:
People with higher credit are typically more well off and less likely to file a claim for damages that are slightly over their deductible.

People with low credit who likely need every dollar that can get are more likely to file a claim.

Example:

You sideswipe a pole and do $1500 in damages. You have a $500 deductible.

The higher your credit score, the less likely you are to turn in a claim for that.

I dunno that people with higher credit are necessarily more well off. They often are more well in debt. Example some high paid couple, both doctors, while though bringing in two big salaries many are close to being upside down..... they owe on their $900,000 house, med school loans, boat, credit cards, his pick up truck (her Mercedes is leased), etc. But they're staying up on all those payments so they have a high credit score. Someone else could own their home, vehicles, rental propertiy, with everything paid for and $1 mil in the bank, and they have a lower score. Which one do you think will be most likely to turn in something to insurance that they should be paying out of pocket?

I get that people who make all their loan payments on time should be rated higher that those who are late or miss some altogether. But should that person also be rated higher than one that has money in the bank, house paid for, no debt and therefore no payment history?

quote:

Originally posted by 1s1k:

quote:

Originally posted by PD:

quote:

Originally posted by 1s1k:
I've never had any insurance ask what my credit score is.

They don’t ask you. They just look it up.

Yeah I guess I worded that incorrectly. No one asks you they all look it up. I used to keep an eye on those things until I realized how ridiculous it was.

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Originally posted by Scurvy:

There's plenty of exceptions to every rule but in general people with high credit have a lower claim frequency than people with lower credit.

That's why it's used.

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Credit score has shown to be a relatively accurate predictor so it gets used.

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Originally posted by ridewv:

quote:

Originally posted by 1s1k:

quote:

Originally posted by PD:

quote:

Originally posted by 1s1k:
I've never had any insurance ask what my credit score is.

They don’t ask you. They just look it up.

Yeah I guess I worded that incorrectly. No one asks you they all look it up. I used to keep an eye on those things until I realized how ridiculous it was.

The impression I got was they were somehow required to inform us when digging for our credit score, which was the purpose of the letters I occasionally receive. But maybe that's not the case only some companies have the policy of notifying.

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Originally posted by Edmond:
Not that anyone could ever game a credit score...

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I have my credit report frozen at all 3 major agencies and have to obtain a 1-time password for a company to run my credit. It's been this way for several years and I've never had an insurance company request the 1-time password.

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30 years of running two large general and auto insurance agencies taught me that folks with lower credit scores have more frequent and more costly claims than those with higher credit scores.

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Originally posted by a1abdj:

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I have my credit report frozen at all 3 major agencies and have to obtain a 1-time password for a company to run my credit. It's been this way for several years and I've never had an insurance company request the 1-time password.

That's for a hard inquiry, which in my opinion should be the only type of inquiry. That's when you apply for credit and somebody is running your credit to make that determination. Mortgage, auto loan, credit card, etc.

Soft hits don't require your password as they are not used for fraudulent purposes. They are merely taking a look to see how they can screw you in some other fashion based on mostly irrelevant factors.

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Originally posted by AZ Husker:
My daughter had to have her credit score run to rent an apartment.

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Originally posted by ridewv:
I have one credit card which I use for most purchases and I don't wait for the monthly statement but pay it off every couple weeks. I decided I should have one other card after my MasterCard was "compromised" and had to wait a day for a new card. Being without it a wasn't a problem but if it occurs again while I'm traveling it could, so I now have two cards. I've used the new card twice to make sure it works and paid it off within a few days, I'll just use it occasionally to keep it active. That's it.
In talking with my daughter on this subject when she called just a few minutes ago (she is in banking) she said "you know your credit score will drop now that you picked up a second credit card, right?" I thought good Lord, but then she added "after you generate a history with it your score will go back up again".