Community Chat

[Trinity11]

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@software wrote:

Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher.

While this may be a "fact" it's selective and again an excuse to punish poor people.

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My score is 820. We paid off our mortgage and paid cash for our 2012 car. No consumer debt ...Amex and visa paid in full monthly. Reason for not having an 850 was no debt or loans. Crazy!

[itiswhatitis]

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@libbyannE wrote:

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@software wrote:

The FICO score doesn't tell the whole picture of your credit worthiness

ANd it's just a tool to keep  poor people poor.

Higher insurance?   What's that got to do with your credit worthiness?   You pay your insurance bill every month, you get your insurance.    Should be unrelated.  You don't buy car insurance on CREDIT.

If you choose to have no debt, then you have ZERO for a score. It's a tool to promote debt.

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@millieshops wrote:

@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans? 

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Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher. Also, if slow- or no-payers miss insurance payments, that is costly for insurance companies who have to pay people to go after those poor payers. That should be obvious. If you have poor credit, you are COSTING other people money and even increasing credit card interest rates for all of us. 

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@libbyannE It's a good thing this is a "science."  It's not exact and of course, not all people who do not manage their bills well have other risky behaviors.  Sometimes it's just a paycheck away.

[SeaMaiden]

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@Trinity11 wrote:

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@software wrote:

Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher.

While this may be a "fact" it's selective and again an excuse to punish poor people.

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My score is 820. We paid off our mortgage and paid cash for our 2012 car. No consumer debt ...Amex and visa paid in full monthly. Reason for not having an 850 was no debt or loans. Crazy!

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@Trinity11  I agree!

[MarieIG]

Credit score is about 807. The comment on the report is that it would be higher, however I have no revolving debt (i.e. bought a modest house and paid off the mortgage early: bought modest cars with savings). Try to pay off cards (timely) in full each month. I believe that creditors and landlords should be entitled to make decisions on credit history. I live in NYS / LI and pay through the nose for insurance, notwithstanding the good score and bundling auto and homeowners.

[LilacTree]

FICO scores used to be a very secretive thing.  Even if the bank gave you the loan (based upon your score) it would not divulge it to you.

Then they started realizing that it could be a profit leader for people to know their score and now one can see it for nothing.

When I was approved for this apartment, management didn't even want to see my FICO score.  They said it meant nothing to them.  I suppose that is because they are not giving me money.

You want to know how I became eligible for this apartment?  The part of my credit report that indicates how you pay your bills.  Mine was 100% and always on time.  I've been here over a year and half now and they have never received a rental payment on time . . . because it's always two weeks early, LOL!!

[Carmie]

I view my credit score on the Capital One website for free.  I can view all of the credit cards that I have opened and ones that were closed years ago. It shows my amount of credit that I have available and percent that is used.

I can view any inquiries that were made.  It makes it easy for me to monitor my credit and keep an eye out for any fraud.

I have a cc card jointly with my DH.  I have never used it, but he carries it all of the time.  I noticed that his almost $5000 balance was not going down month after month and was on my credit because it is owned jointly.

I brought this to his attention and he says he pays off the balance monthly.  I showed him the website to prove my point.  Well, the credit union never sent in updated information.  They sent it ASAP after he complained. 

Everyone should check their credit monthly... good or bad.  There might be a mistake on your account or illegal activity you should be concerned about.

Oh, one more thing I have learned.  PalPal does not show up on your credit report.  I tend to buy expensive items with PayPal over the Internet.  They almost always give you six months to pay interest free.  I just pay the minimum due each month, then pay the total mount due right before the six months is over.  I Pay the balance due each month on smaller purchases.

[libbyannE]

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@itiswhatitis wrote:

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@libbyannE wrote:

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@software wrote:

The FICO score doesn't tell the whole picture of your credit worthiness

ANd it's just a tool to keep  poor people poor.

Higher insurance?   What's that got to do with your credit worthiness?   You pay your insurance bill every month, you get your insurance.    Should be unrelated.  You don't buy car insurance on CREDIT.

If you choose to have no debt, then you have ZERO for a score. It's a tool to promote debt.

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@millieshops wrote:

@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans? 

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Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher. Also, if slow- or no-payers miss insurance payments, that is costly for insurance companies who have to pay people to go after those poor payers. That should be obvious. If you have poor credit, you are COSTING other people money and even increasing credit card interest rates for all of us. 

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@libbyannE It's a good thing this is a "science."  It's not exact and of course, not all people who do not manage their bills well have other risky behaviors.  Sometimes it's just a paycheck away.

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Of course. But I am sure insurance companies have to go with averages because they cannot know each customer personally. It is what it is, like it or not. I totally understand that there are times when otherwise responsible people find themselves in circumstances that create debts and late payments, due to no fault of their own!

[Carmie]

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@millieshops wrote:

@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans? 

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Many years ago when at was in my 20's with three small children.  My husband and I had a difficult time financially. One of my husband's employers closed when the place burnt down and the other one moved out of state.  Yes, he was working two jobs.

Our car broke down and could not be fixed and we had to purchase another.  We needed the car so my DH could go find a job.  For about six months,  we had a hard time paying our bills. The only income we had was from hubby doing odd jobs while I cut hair for a few people out of my home.  We always paid something on each bill., but most of the time we could not pay the full the minimum payment due.  

We had no credit cards with a balance on them.  Our bills were mortgage and house utilities.

We borrowed the money from the bank for the new used car at a very high interest rate because we had no choice.  My father found out about the interest rate and hit the roof.  He wrote out a check for us to pay the car off and we paid him back.

We were young, honest and poor and trying to catch up.  We have never defaulted on a loan and never applied for or received public assistance ( though we were eligible)

People with excellent credit get all kinds of financial perks.  Working people trying to get ahead with lower credit scores keep hitting a brick wall.

Now I know why many people who are trying to get ahead give up.  It's easier to just look for free assistance.

Now, I don't think that people who default on loans or don't pay their bills because they are spending more than they make should just stroll into a bank and get a low interest rate.  But, I do believe they should look at the whole picture, not just a FICO score.

And, I don't think it is right to pay more for auto insurance because of your FICO score.

[Havarti]

I have also been at 850, for about 8 months. It was a game, a puzzle for me to try to figure out how to get there. Previously I was low to mid 840’s. I was determined to hit that 850 mark for fun. The bank told me anything over 740 is about the same to them…otherwise it is just a number. Years ago I didn’t care or pay attention to things like credit, so once I wised up to the importance of good finances it became a personal goal to figure out how to hit the highest number. There is nowhere to go but down now (it won’t break my heart), so I am on to a new goal – not financially related. It is good to have new goals to keep me challenged & motivated. This one is checked off my list.

[itiswhatitis]

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@libbyannE wrote:

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@itiswhatitis wrote:

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@libbyannE wrote:

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@software wrote:

The FICO score doesn't tell the whole picture of your credit worthiness

ANd it's just a tool to keep  poor people poor.

Higher insurance?   What's that got to do with your credit worthiness?   You pay your insurance bill every month, you get your insurance.    Should be unrelated.  You don't buy car insurance on CREDIT.

If you choose to have no debt, then you have ZERO for a score. It's a tool to promote debt.

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@millieshops wrote:

@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans? 

---

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Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher. Also, if slow- or no-payers miss insurance payments, that is costly for insurance companies who have to pay people to go after those poor payers. That should be obvious. If you have poor credit, you are COSTING other people money and even increasing credit card interest rates for all of us. 

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@libbyannE It's a good thing this is a "science."  It's not exact and of course, not all people who do not manage their bills well have other risky behaviors.  Sometimes it's just a paycheck away.

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Of course. But I am sure insurance companies have to go with averages because they cannot know each customer personally. It is what it is, like it or not. I totally understand that there are times when otherwise responsible people find themselves in circumstances that create debts and late payments, due to no fault if their own!

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I have no doubt they do.  I won't be lobbying for any changes.  They are what they are.  Just good to know that social constructs have flaws embedded in them is all @libbyannE.