Anyone knowledgable on how credit score affects insurance rate?

January 24, 2020, 11:59 AM

Why Insurers check your credit score

They are not looking at your entire credit record, most likely a bump up against the file to get the score, which is a way credit bureaus sell your credit records without selling your credit information.

When you apply for insurance, or, if you have a policy they have language in there where you agree to let them do this, and if you think your company hasn't, you're wrong....

January 24, 2020, 12:40 PM

bigdeal

Rather than address the sepcific question asked (which others have already done), I'll offer you this instead. Credit score is simply one more item an insurance company can use to jack your rates. My recommendation to everyone is to treat insurance like any other consumer good. Shop for the best deal every year or two and go with what you find. There is virtually zero benefit in today's world to being a long term customer of any particular company. I've had approximately five different auto insurance companies over the last 10 years. Never due to being cancelled, always due to premium increases I felt were unjustified. IMO, you should never be attached to any insurer for more than a few years, unless it continues to make financial sense to do so.

January 24, 2020, 12:48 PM

ridewv

quote:
Originally posted by tiwimon:

BUT adding more card(s) is also a great thing because it ups the total amount of credit available - lowering your credit utilization and also each card changes history of accounts. Try to add a few more cards all close together so the inquiries will hit in a short date range and drop off close together - inquiries drop off quickly BUT again you will need to factor in any planned credit purchases like a mortgage - lay off if you are thinking mortgage for example.

Yes I know pay off each month - and we do religiously - but reporting time factors in as well if your one card had a 700 balance when they reported its still part of the credit utilization even if you pay off the week after reported your report till next update will account for the debt till then - so having more cards and higher limit cards to boost available credit negates the normal spend hit

It goes even more in depth that that - an excellent video I just watched is below if interested

Thanks.
Yes, my daughter mentioned that adding second CC would eventually help if I used it, just that the score would drop initially as I now have the ability to double my CC debt. I have no interest in adding a third card and really could give a hoot what my score is, "0" would be fine with me because I have no interest in borrowing money. But since this stupid "score" can effect my insurance I want to keep my score over whatever the minimum number where they might nick me for more money. I guess I need to find out what that number is?

January 24, 2020, 01:01 PM

smlsig

I’ve had an interesting experience recently regarding my FICO score...

My FICO score has been over 800 for over a decade. Like many here we always pay off our cards monthly and I have had two personal cards although I changed one recently to get a mileage bonus...

Then for Christmas I purchased a very nice ring for my wife and my “Credit Utilization” on that one card went up to about 20%.

A few days later I get a notice from Credit Karma that my score has changed. When I looked it up it had dropped by more than 50 points! That makes no sense to me...so I’ll be asking to have my credit limit upgraded to allow for other future purchases...we’ll see..