Credit Rating Now Used for Insurance
Yet another way your credit score can affect you (as if there weren’t already enough factors your credit score affects) - your car insurance. Yep, that’s right, many insurance companies are now instituting a credit rating factor in the rating and calculation of what insurance rates you will pay.
Why, you ask would insurance companies base your rate on your credit rather than solely on the factors that you think “matter ” like driving record and age?
Well, from an actuarial (complicated way they calculate risk taken for a certain policyholder and likelihood they will have to pay out on a a claim) standpoint, studies and statistics have shown historically that people with better credit tend to have less claims. It’s just one of those things, that if you were to take a million other things and put them in the equation, or even just one more tiny thing, it can skew your results.
I never will understand actuaries - but then again, most of them are bordering on genius to come up with the statistical data they do - all to calculate what kind of risk you’ll be for insurance rates. And we thought there was no such thing as telling the future!
Credit Repair: Beyond the Fair Credit Reporting Act
(ARA) - Bad credit can happen to good people. On a day-to-day basis, you can’t control all the factors that influence your credit score. What’s more, credit reports consolidation counseling debt contain errors.
Comment by consolidation counseling debt — August 1, 2006 @ 7:44 pm
Airlines put pressure on Senate over pension bill
Airlines with ailing pension plans continue to pressure on the Senate as it considers reforming the nation’s retirement. As a result, enactment of sweeping reforms depends a great deal on the outcome of a ferocious lobbying battle involving Delta and Northwest on one side, American Continental on the other.
Comment by bad boat credit loan — August 3, 2006 @ 1:13 am