Posted On: March 17, 2009, 1:25 pm CDT

Posted By: Chris

The entire credit score issue (not only for insurance purposes) is completely ridiculous and the reason why the economy is exactly where it is. The problem with the credit score is following - people only get a credit score when they create debts, which is never a sign of having any cash rather then a good payment behaviour. Those people who pay at least the minimum balance will always be out of cash, but get a good score and even more credit offers. So it needs only the loss of the job or a sickness and the whole credit bubble burst and at the end, all the institutions which trust in credit scores will never see their money again, despite a fantastic credit rating. I expericed the problem which all expatriates face when they come to America - earning good money, but as you don't have a credit history, you don't even get a car lease, a credit card, a rent, but horrible insurance conditions, even you have a better payment behavior than many of those with the good credit rating. In my opinion, the only way to know, if a customer is a "good" customer who pays his bills, is to know, how much money does he have left over from their monthly paycheck, but therefore, this system has to be completely turned around.