Credit rating question

[Lost_in_the_HTTP]

Unless you're taking out a loan or wanting to open another credit card, what difference does it make?

You'd be surprised. It can affect insurance rates for one. It can cost you a job, or promotion for another. It can even keep you from getting a cell phone plan, or cable TV, or other utility. Might even keep you from renting a car.

Anything that involves handling money in any way.

 

[manly]

well, they offer you free score checks. I don't think they offer you the actual reports. The full reports are....detailed. Scary so. I think you can typically pull one per year for free from the credit agencies, and it's scary the crap that you find in there.

Huh, what's so scary about a consumer credit report? The entire report can seem a little long, but doesn't contain much that is revealing unless you have a lot of loans out? Otherwise, who cares that my credit cards are listed with monthly payment history going back 7 years. This is a sliver of info compared to what Google or Facebook keeps on people.

OTOH, the credit reporting agencies do have an extensive database on all of us that they happily sell to other corporations, and the amount of personal data in those proprietary reports could be substantial. That's why the Equifax 2017 data breach was so devastating, and I'd argue that level of incompetence deserves the corporate death penalty (i.e. Arthur Andersen of Enron infamy).

 

[BoomerD]

You'd be surprised. It can affect insurance rates for one. It can cost you a job, or promotion for another. It can even keep you from getting a cell phone plan, or cable TV, or other utility. Might even keep you from renting a car.

Anything that involves handling money in any way.

Looks like Washington is trying to fix that criminal behavior. Insurance rates (automobile)should only be based on the cehicle you drive, where you live, and (most importantly) how you drive...

 

[Scarpozzi]

You'd be surprised. It can affect insurance rates for one. It can cost you a job, or promotion for another. It can even keep you from getting a cell phone plan, or cable TV, or other utility. Might even keep you from renting a car.

Anything that involves handling money in any way.

I guess....I suppose I've just not had any of those issues because my rating has been pretty stellar. The last time I wanted an unsecured loan, I ultimately had something for collateral, so I ended up saving myself 6 and a half points by going with secured loans. My real point for the purposes of this thread is that closing a few lines of credits shouldn't change anything. If you're under 700, I would imagine you may be subject to scrutiny and I totally agree with those that say that's somewhat discriminatory, depending on how the credit rating is calculated and what the difference in rates charged actually are.

Looks like Washington is trying to fix that criminal behavior. Insurance rates (automobile)should only be based on the cehicle you drive, where you live, and (most importantly) how you drive...

Lower credit rating typically follows wealth, which is typically built over time....so the whole thing pertaining to insurance could absolutely be age discrimination, though they will likely just claim it's "risk assessment". I'm in agreement that the practice is dirty...but at the same time, as long as my assessment is that I'm lower risk and insurance companies give me a good rate, maybe I shouldn't care how they screw over others? I really don't know what the proper response should be.