Credit score question

[cleller]

My wife is upset over our recent auto insurance bill. With the bill they included a letter mentioning an "Insurance Score" being used to determine rates. Also in the letter it mentioned an insufficient credit history could forestall obtaining an Insurance Score. We then noticed the liability rate on her car was a little higher than my truck. Not sure if it is the vehicle or driver being singled out. We don't have collision/comprehensive on either.

She became concerned that her credit history might look bad, due to lack of activity. For the last 10+ years we have not had a mortgage, and she has not had a loan of any type. Only 1 credit card, which is paid monthly.
On the other hand, I did take out a 0% car loan about 5 years ago for our daughter's car, and paid it off. I also took out a HELOC briefly while building our current house and paid it off.

So I went off to AnnualCreditReport and looked at our reports. Everything looks fine, no flags. Her reports do not show her current employer, or much work history at all, the only entries are her credit card bills, all showing a zero balance. Mine looks about the same, but does show the paid off car loan, but not the HELOC, oddly.

Anyone run into this "Insurance Score" yet. Any suggestions on how to keep your credit history looking good, when you don't use credit?

Kind of a ludicrous situation the way debt is valued more than assets sometimes.

[olevetonahill]

Shop around on the Insurance bro. After a couple years some of em think they own you.Im guessin Yall havnt had any claims or accidents .

[okiewaker]

Insurance companies suck,,,If you make a claim they delete you,,,,if you don't make a claim they raise your rates. As Vet said,,shop around,,,and let it be known to your current carrier. Might help,,idk.

[okiewaker]

BTW,,,never heard of insurance score,,but I'm sure it's some calculation they use for raping ppl.

[olevetonahill]

I know most use your Credit Score also.

[8timechamps]

If you don't use credit, your score will be affected. Our credit rating system is out of whack to being with, but that's for a different thread.

Is there a major difference in the type of car she has (versus your truck)? Is it newer? The car can definitely make a difference. Like others said, shop around for the best rate. Sounds like you just carry a basic policy, so you should be able to find something fairly inexpensive.

For what it's worth, you should think about adding a uninsured driver rider to your policy. There are a lot of uninsured motorists out there, and nothing makes an accident (that wasn't your fault) worse than learning the moron that hit you is uninsured. I learned that the hard way about 20 years ago.

[cleller]

If you don't use credit, your score will be affected. Our credit rating system is out of whack to being with, but that's for a different thread.

Is there a major difference in the type of car she has (versus your truck)? Is it newer? The car can definitely make a difference. Like others said, shop around for the best rate. Sounds like you just carry a basic policy, so you should be able to find something fairly inexpensive.

For what it's worth, you should think about adding a uninsured driver rider to your policy. There are a lot of uninsured motorists out there, and nothing makes an accident (that wasn't your fault) worse than learning the moron that hit you is uninsured. I learned that the hard way about 20 years ago.

Oh yeah, we've got plenty of UM (uninsured motorist), just not the collision/comprehensive as both vehicles are at least 7 years old. My wife is actually very knowledgeable on insurance, but this new curve of "insurance score" is a little perplexing. The cost for liability was the same for each vehicle until this renewal.
We regularly shop 'em around, but have liked this company pretty well.

[Collier11]

Insurance companies using credit to determine rates is ridiculous...shop around, some don't do this anymore

[yermom]

did you look at the report or actually get the score as well?

[olevetonahill]

did you look at the report or actually get the score as well?

There are some that will give you what they say is your Credit score but to get the one from the 3 Credit reporting agency's you have to pay.

[cleller]

did you look at the report or actually get the score as well?

I went and checked them today from AnnualCreditReport. My score is higher, but both are over 800. (had to pay to get the actual score, but I hadn't seen my score in years.)

If the reports are accurate, the only requests for either of our reports in the last few years was our credit card company, Citibank.

[okiewaker]

Bubba,,,if you're busting 800 scores you shouldn't hear a peep.

[olevetonahill]

Bubba,,,if you're busting 800 scores you shouldn't hear a peep.

800 is considered PERFECT bro.
So what Kinda car does She drive? Liability is usually rated on how much Damage a Vehicle can do. Say a Big ole 1 ton truck can an will do more damage than say a ford fusion .

[Collier11]

if your score is in the 800s and your rates are higher because of credit, that amounts to fraud

[cleller]

I always thought the 800s was supposed to be good, but the Transunion score said 817 (wifes) was only in the 59th percentile, so I started to re-think it.
Mine was 860, which they identified as the 71st percentile. Not to be snobbish, but those percentiles don't seem exactly stellar to me. I have a 30 year credit history with multiple mortagages, car loans, credit cards, bank accounts, etc paid off without one bounced check or late payment. I currently have no debt whatsoever.

It seems the credit companies have started jacking with credit score models. Now some scores go all the way to 990. Some people who think they have great credit are getting surprised.
http://money.cnn.com/2013/01/24/pf/c...ore/index.html

I picked Transunion for no particular reason, but it seems they have their own scale. There's just no end to what companies will do to screw up the system.

[cleller]

800 is considered PERFECT bro.
So what Kinda car does She drive? Liability is usually rated on how much Damage a Vehicle can do. Say a Big ole 1 ton truck can an will do more damage than say a ford fusion .

Wife's is a Ford Focus, mine is an F150. See, makes no sense. She's going to discuss the matter with the local agent. Like I mentioned, up to now we've been very happy. Really like the agent, who has been upfront that rates in OK are getting scrutinized.

[SanJoaquinSooner]

that's some serious credit score inflation.

[8timechamps]

I always thought the 800s was supposed to be good, but the Transunion score said 817 (wifes) was only in the 59th percentile, so I started to re-think it.
Mine was 860, which they identified as the 71st percentile. Not to be snobbish, but those percentiles don't seem exactly stellar to me. I have a 30 year credit history with multiple mortagages, car loans, credit cards, bank accounts, etc paid off without one bounced check or late payment. I currently have no debt whatsoever.

It seems the credit companies have started jacking with credit score models. Now some scores go all the way to 990. Some people who think they have great credit are getting surprised.
http://money.cnn.com/2013/01/24/pf/c...ore/index.html

I picked Transunion for no particular reason, but it seems they have their own scale. There's just no end to what companies will do to screw up the system.

I've never heard of anyone that actually had a credit score above 950, so I tend to think that's another erroneous figure being floated around out there. Anyway, the credit system (and what and how things are reported) is a mess. For instance; your credit score shouldn't be affected because a lender is looking at it! I didn't even know that was the case until I was purchasing my first vehicle years ago. I couldn't decide between two cars, and everywhere I went, they wanted to check my score to "get me the best rate". Finally, I was told (at Bob Moore, I think) that every time my credit was being checked, it affected my score (I think the guy was using it as a sales tactic, but it was also a lesson for me).

I can understand if one's credit was affected every-time they applied for a loan, but just to have it looked at, that seems so ridiculous to me.

Anyway, maybe you should call the insurance company Monday and get some details on this whole thing. Sounds very odd.

[rock on sooner]

I don't know if it is true today, but, used to be that excessive credit inquiries
would affect one's ratings and, make potential lenders wary...the idea being that
all those inquiries might mean getting overextended and become a risky customer.
Also, I think the correct credit scoring is <500 to 840. I've not heard of official
scoring above 840.

[Turd_Ferguson]

Wife's is a Ford Focus, mine is an F150.

This...could be the issue.