Consider the statistical evedince that those who have motor vehicle violations on their MVR have more claims.
Consider those who are under 25 years old or over 72 have more auto accidents.
Consider those with older homes have more homeowner claims.
Consider some who drive sporty cars have more claims, as some who drive modified 4×4’s do as well.
Those with poor Credit Scores have more losses than those with good Credit Scores. Why is this so hard to accept? Why are multiple speeding violations allowed to penalized drivers who argue that they won’t have an accident, they’re a good driver, trust me, yet if someone has a poor score, well this doesn’t have anything to do with their risk of loss?
Get of your whiny sniveling rampage and let risk assessment levie credits and surcharges to those who have higher and lower risk of loss. Insurance is NOT an entitlement. Its a free (but well regulated) industry. Would you rather all people be charged the same for all insurance? Dontcha think socialized insurance has drawbacks that would bankrupt the system?
the insurance companies have done a study in the past related to the number of accidents by hair color. should Red heads be charged more or perhaps blonds, we know that brunetts are the most carefull drivers. Credit scoring does not work!
you can run numbers through a computer and massage them to get exactly what you want.
Credit Scoring is partly snake oil. Since it is only a snapshot of a point in time, there is no trend. For example. If you take a mortgage, have 70% utilization on revolving credit, and buy a car in all the same year, your scoring will deviate by as much as 70 points. A good fico is 700 with average fico at 670. Now if you make a 70 point swing, you’re a bad risk. If you utilize a mileage card and keep some balance through the month then your score will drop while you gain mileage.
If you chase credit card offers of zero percent and flip these cards every 3-6 months, you’re hammering your credit score. So while you thought you’re getting a great deal, your score is being impacted.
Finally, the proponents of the scoring models say people with low score equals greater risk.. This is false. The credit scoring models are driven over time. So if you have young drivers who are at greater risk they also have only a few years of credit history. This would create a very significant weighted statistic.
my experience has shown me that this is a scam.how can you link a windstorm with a creditrating. no one has given me a commonsense answer yet.
Easy explanation on validity of credit score:
Consider the statistical evedince that those who have motor vehicle violations on their MVR have more claims.
Consider those who are under 25 years old or over 72 have more auto accidents.
Consider those with older homes have more homeowner claims.
Consider some who drive sporty cars have more claims, as some who drive modified 4×4’s do as well.
Those with poor Credit Scores have more losses than those with good Credit Scores. Why is this so hard to accept? Why are multiple speeding violations allowed to penalized drivers who argue that they won’t have an accident, they’re a good driver, trust me, yet if someone has a poor score, well this doesn’t have anything to do with their risk of loss?
Get of your whiny sniveling rampage and let risk assessment levie credits and surcharges to those who have higher and lower risk of loss. Insurance is NOT an entitlement. Its a free (but well regulated) industry. Would you rather all people be charged the same for all insurance? Dontcha think socialized insurance has drawbacks that would bankrupt the system?
the insurance companies have done a study in the past related to the number of accidents by hair color. should Red heads be charged more or perhaps blonds, we know that brunetts are the most carefull drivers. Credit scoring does not work!
you can run numbers through a computer and massage them to get exactly what you want.
Credit Scoring is partly snake oil. Since it is only a snapshot of a point in time, there is no trend. For example. If you take a mortgage, have 70% utilization on revolving credit, and buy a car in all the same year, your scoring will deviate by as much as 70 points. A good fico is 700 with average fico at 670. Now if you make a 70 point swing, you’re a bad risk. If you utilize a mileage card and keep some balance through the month then your score will drop while you gain mileage.
If you chase credit card offers of zero percent and flip these cards every 3-6 months, you’re hammering your credit score. So while you thought you’re getting a great deal, your score is being impacted.
Finally, the proponents of the scoring models say people with low score equals greater risk.. This is false. The credit scoring models are driven over time. So if you have young drivers who are at greater risk they also have only a few years of credit history. This would create a very significant weighted statistic.
Just my .02 from working for a credit card bank.