I thought only some places did that.

 

insurance companies + credit companies = mafia.

 

it's a measure of your 'risk-taking, decision making, and personal responsibility'

they can eat me. Guess I'll have to work out a deal with my dad abt staying on his plan, as I refuse to get a credit card or do anything by payment.

 

I refuse to get a credit card or do anything by payment.

now that's smartness
i need some of it

 

Well I went to state farm to get a quote for the bare minimum of full coverage bc I have american family and im paying $133 a month and I thought that was high considering I have a perfect driving record and well the quote from State farm was $266. what a friggen scam

 

it's a measure of your 'risk-taking, decision making, and personal responsibility'

they can eat me. Guess I'll have to work out a deal with my dad abt staying on his plan, as I refuse to get a credit card or do anything by payment.

You know you can have a card and not use it right? I've had an MBNA Visa since 1999. I havent used it in over 2 years.

Anyway, yeah, insurance companies do this. That's why when you ask for a quote they want your social security number.

 

i would say insurance comanies could suck by balls but then then would kill me from space with thier satillite because they are evil and i hate them all. all of them. don't care if it's a local place they are even in conception. screw 'em

 

well the problem with having a credit card and not using it is that it does not help your credit rating any, you need to use the card and then NOT pay it all off at once, but you also should not pay just the minimum. so get a card and use it for your daily stuff, gas, food etc then pay 50-75% of the bill the first month keeping a small balance, it shows that you are responsible and can make payments on time and for more than the minimum required. yes you will be paying interest on it but if you can get a good rate it will only be a few bucks. unfortunatly not having credit can make your life very difficult, its used for everything now.

now as far as the insurance, yeah that sucks but i have pretty crappy credit but it was good enough to get a discount so I dont think they look too hard at it.

Mike

 

well the problem with having a credit card and not using it is that it does not help your credit rating any, you need to use the card and then NOT pay it all off at

You don't need credit for anything. That is the greatest lie put out by the banks. If you can't afford something, don't buy it.

*Except for a house. However, anyone who walks into a mortgage company with 20%+ down will walk out with the mortgage.

 

not all insurance comoanies do this. It is mostly the ones that you can get coverage from ordering on the internet that use the credit score.

 

well if you have a business and want to accept credit cards you have to have credit yourself. and as you said to buy a house or a car (assuming you dont pay for it in full)

Mike

 

not all insurance comoanies do this. It is mostly the ones that you can get coverage from ordering on the internet that use the credit score.

My insurance company is state farm and they looked at my credit and told me that if I have good credit I will get a discount but if its bad then I will just pay the regular price, I am not sure if this is how all insurance companies do this.

Mike

 

Here is how it works with Allstate in Alabama. We do use SSN's. For auto, we have 2 lines: Line 10 (which is the better line) and Line 19 (the basic line). Everyone is given a score from 1-5 for each line. 1 is better than 5. So you could be a 3 on Line 10 and a 2 on Line 19.

Usually, if you have good credit and current auto insurance, we can put you on Line 10. There are more discounts available on this line and it's Allstate's 'preferred' line. If your credit isn't so great and you don't have current insurance, we put you on Line 19. Having current insurance is the best way to get on Line 10. Your MVR is also ran, and plays a part in determining your rates.

For Homeowners insurance, the score goes from 1-10. 1 being the best.

Not all insurance agents are scum. We don't make the rates, the underwriters do. We simply tell them what you want and they decide how much to charge.

 

Grange in Ohio works almost the exact same way ^^^^^^^
good credit only improves your rates bad credit doesnt hurt them in anyway except you start at the base price but usually drop fairly quickly if you maintain your account. Mine has gone down a bit everytime it has renewed for the last 10 years.

Also call your agents and ask about renters insurance, alot of the time you get a multi-policy discount that makes the cost stay the same while increasing your coverage to include your apartment. and be nice to your agent they just work for the big guys they dont set policy but if they like you they might keep a better eye on your account and find a little bit of saving or increased coverage for you. If your a dick then you just get what you ask for.

 

Most companies usually have really good rates for renters' insurance. With Allstate, it averages between $25-$50 a month for $20-$30K of contents coverage. But in order to get a multi policy discount, you have to be on Line 10 auto.

 

Heck, in Seattle, Progressive tried to get me to pay over a $1100 for 6 months because I live in a high risk neighborhood.

WTF !!!

It has nothing to do with my driving skills or points.
So, I went to Geico and they don't discriminate against your neighborhood and got 6 months for less than $600.

 

The method is called credit scoring, and is illegal in many states or may fast becoming illegal in others. In principle, I agree with the method in the sense that people who service debts regularly tend to be more cautious with their behavior- after all, they need to be working to make that next payment. The problem is that it affects certain segments of our population disproportionately- the elderly who are naturally risk averse and are not huge consumers of credit.

I agree with blueovalbaloon that credit is not always a good thing, but the fact remains that we are increasingly becoming a culture where having a high FICA score is worth more than the equivalent money in the bank. It's sad, but true. It is my perception that those who do not use credit at all tend to pay more for things. Sure, you can get a mortgage with 20% down, but with no payment history, that interest rate is rather high. Some debts are good, some are bad, what's needed is widespread financial literacy. That simple.

 

FICO (Fair Issac and COmpany) score... FICA (Federal Insurance Contributions Act)is a tax.

But yes... there are factors within credit scoring that do not have any relevance to your insurability.. (like debt to income ratio.... my $40K in student loans are holding my credit score down, specially since I'm unemployed technically at the moment...... But I've never missed a payment on any of my school loans, nor my car loan, and haven't missed a credit card payment in 7 years.......)

 

But what if you don't drive/ haen't driven in forever (like my case, I only drive when the bf needs me, and haven't had my own car) so you don't have current insurance, and you have NO credit?

 

it's a measure of your 'risk-taking, decision making, and personal responsibility'

Maybe in some cases...what's with people that come over here from other countries be it for school or work? In germany for example we don't really use that credit rating you use over here. Someone who comes over, as I did, starts with their credit rating at 0...

 

Some debts are good, some are bad, what's needed is widespread financial literacy. That simple.

The problem in the U.S. are folks using credit to get a instant gratification fix. Very few people save for a purchase. The smart credit user has the cash to pay for what he's charging.

 

FICO (Fair Issac and COmpany) score... FICA (Federal Insurance Contributions Act)is a tax.

But yes... there are factors within credit scoring that do not have any relevance to your insurability.. (like debt to income ratio.... my $40K in student loans are holding my credit score down, specially since I'm unemployed technically at the moment...... But I've never missed a payment on any of my school loans, nor my car loan, and haven't missed a credit card payment in 7 years.......)

You're right, my bad. FICO, not FICA. I was doing taxes last night.

 

I have a perfect driving record but my credit is shot thanks to my 2 older sisters...

What does having 2 older sisters have to do with your credit being shot ?? If they expect you to put things on your credit card and don't reimburse you, after the first episode, you can refuse to run up your credit card balance. You don't have to co-sogn their loans... If you allowed them to use your crdeit, the choice was yours...

I have family members and in-laws who try this from time to time. I learned to hold the line.

 

Some debts are good, some are bad, what's needed is widespread financial literacy. That simple.

The problem in the U.S. are folks using credit to get a instant gratification fix. Very few people save for a purchase. The smart credit user has the cash to pay for what he's charging.

I agree with that too Phillip. I guess what's disturbing to me are folks buying more than they really need or can afford- your instant gratification notion. The free proliferation of credit (especially unsecured lines of credit, i.e., credit cards) in our society to those who may not be able to afford it seriously drives folks to buy stuff they ordinarily would not be able to afford.

I use credit, but judiciously use it, only buying things that I can easily afford and things that are not necessarily bad to buy with credit. (Cars that don't cost an arm and leg, houses that are small and comfortable, student loans whose interest is tax deductible and principal low because I refused to spend mega bucks and be raped for tuition at a private university, etc.)

The problem is, like it or not, a person's worth, or the notion of a persons worth is quickly being shifted into one's FICO score rather than money in the bank, as it once was. As a bankruptcy law practitioner, the number one reason I file Chapter Sevens is due to credit card debts. It's ridiculous.

Number two, is catastrophic medical expenses, but that is another topic.

 

I don't agree with the person who stated that in order to GAIN credit you needed to leave a balance on your CC bill every month. Why is that? I've had a credit card for 5 years, NEVER had a balance on the card, EVER. I also have a car loan that I pay OVER the payment every month. That among cell phone bills, car insurance, and rent every month, I have a beacon score of 708 and have never gotten turned down on anything. Why is my credit so good if I have NEVER left a balance on my CC cards? Granted I have never defaulted on payments nor been late or really had anything negative, but by this person's statement, one would assume that I would have not been building credit these past 5 years because I have not had any balances.

Please elaborate on this for me.

Thanks