Posted On: January 21, 2007, 8:23 am CST

Posted By: Ray

In your response, you indicate, "If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium..."

This is wrong - a certain amount of healthy activity will increase your score, not depress it. A person who purchases a car, home or gets a credit card generally will see an increase in their score. I have checked my record on all three of the major scoring services, and I see inquiries from companies that I have no relationship with (guess Capital One is trying to find out what they want to offer me) but my reports also indicates NO deliquencies, NO forclosures, etc. My credit score is very good, and it is all because I have managed my credit and lived within my means and paid all bills when due.

I have more credit cards than I need and if I were to max them all out it would easily exceed my annual income, but I don't.

I don't mean to brag about my scores, but the point is that activity does not equate to lower scores, actually activity can elevate the score,.