Credit Question

[Ted Calver]

.... the better the credit rating, the better insurance rates you get.....

And what's that all about??? I've been with my auto insurance company over 40 years and they have the nerve to tell me they have adjusted my rates based on my FICO because your credit score an indicator of the likelihood that I will file a claim....and that 40 year history (no claims) is chopped liver???? Any excuse to screw over the consumer...weasels!

[Mike Cogswell]

And what's that all about??? I've been with my auto insurance company over 40 years and they have the nerve to tell me they have adjusted my rates based on my FICO because your credit score an indicator of the likelihood that I will file a claim....and that 40 year history (no claims) is chopped liver???? Any excuse to screw over the consumer...weasels!

Call your insurance company and tell them you want to cancel since they are screwing you despite 40 years of clean history. You'll quickly find yourself talking to someone in their retention department who is paid to keep you. Same thing happened to me last year and they wound up cutting my rate significantly instead of increasing it so I wouldn't cancel.

Companies will try hard to keep long time loyal customers - we're hard to replace. Same tactic works with cell phones, cable TV, Sirius/XM etc.

[Brian Elfert]

The only reason I have any concern over credit rating is the better the credit rating, the better insurance rates you get. Other than that, Fico can take a long walk off a short pier.

Buying a car on credit won't reduce your score by much. In fact, if you aren't using credit your credit score might not be that great.

A number of states have made it illegal to use credit scores for insurance pricing. I know the state of Minnesota has had bills introduced every year since 1998 to ban the practice. I don't get the uproar over using credit scores. Insurance companies spend lots of money to determine how to price risk. Presumably they have research that shows that someone with a low credit score is more likely to commit insurance fraud or to turn in small claims.

[Matt Meiser]

Our company offers discounts the higher your score. I don't get where they are getting the scores, because I just checked my reports the other day and there are no inquiries from them.

[Jim Becker]

No, it doesn't hurt your credit rating or score at all.

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On the insurance situation, many of the carriers do consider credit history as part of their underwriting criteria as they feel that folks with higher scores are less risky than folks who have lower scores. There is much debate about this, but regardless about how you feel about it, there are few auto insurers who don't use it.

[Jerome Stanek]

It depends on how the credit company shows it on their books. I had a friend that payed off his car a month after he bought it and 6 months later it was reposed for lack of payments. The credit company only showed one payment but not the amount. He sued the credit company and the company that towed his car and won both cases. This happened quite a few years back so I don't know how things are today.

[Brian Elfert]

It depends on how the credit company shows it on their books. I had a friend that payed off his car a month after he bought it and 6 months later it was reposed for lack of payments. The credit company only showed one payment but not the amount. He sued the credit company and the company that towed his car and won both cases. This happened quite a few years back so I don't know how things are today.

How would the tow company be liable for a wrongful repossession? The financing company simply hired the tow company for the job.