Credit bureau issues - PeachParts Mercedes-Benz Forum

HuskyMan · #1 06-23-2010, 11:36 PM

all insurance companies use credit scores to determine the rates you pay. some insurance company bean counter decided that how well you pay your bills somehow determines the probability of you making a claim.

in the world of insurance, bad credit means you will probably be making a LOT of claims.

I'd like to see the science behind that nexus, but something tells me I"ll be six foot in the ground before that happens.

aklim · #2 06-24-2010, 01:12 AM

Quote:

Originally Posted by HuskyMan

all insurance companies use credit scores to determine the rates you pay. some insurance company bean counter decided that how well you pay your bills somehow determines the probability of you making a claim.

in the world of insurance, bad credit means you will probably be making a LOT of claims.

I'd like to see the science behind that nexus, but something tells me I"ll be six foot in the ground before that happens.

Think about it this way, if you are having a poor credit score, doesn't it show you have a problem handling money? If so, aren't you more tempted to fudge a few claims? If I owe big bucks, am I more likely than someone who is fine in the financial sense to say that I lost $2000 worth of items as opposed to really $500?

I think it is about actuarial science where they deem you more or less likely because of this or that.

HuskyMan · #3 06-24-2010, 08:10 AM

total up the total dollar amounts you have made for claims against your insurance carrier. then total up the total dollar amounts of all the premiums you PAID to them.

and the WINNER is.........THEM!!

aklim · #4 06-24-2010, 11:05 PM

Quote:

Originally Posted by HuskyMan

total up the total dollar amounts you have made for claims against your insurance carrier. then total up the total dollar amounts of all the premiums you PAID to them.

and the WINNER is.........THEM!!

Here is an idea. Why don't YOU start an insurance company where we, the subscribers are the winners all the time. Here is an idea. If we have an accident today, we pay the premium at what we would pay normally for insurance to you for 2 months. 1 month before the accident and 1 month after. Rest of the time, no payments. That way you can set it up so that us, the subscribers win. Obviously, you have to pay the claim.

I am not sure where you got your idea of insurance but it is not about winning, It is about minimizing your potential losses. You don't buy insurance to win. If you want to win, buy a lottery ticket and try your luck. Insurance is about paying for something you hope you don't ever need but if you do, something is there to mitigate your losses.

t walgamuth · #5 07-21-2010, 10:20 PM

So today I pulled another credit report and all the things I protested are gone except the bogus one from the local county library!

WoooooHOooooooo!

My credit score now is 776 778 and 692.

Sometimes things do work like they are supposed to.

I would not have bet a nickel this would be the result!

HuskyMan · #6 07-22-2010, 09:45 AM

Quote:

Originally Posted by t walgamuth

So today I pulled another credit report and all the things I protested are gone except the bogus one from the local county library!

WoooooHOooooooo!

My credit score now is 776 778 and 692.

Sometimes things do work like they are supposed to.

I would not have bet a nickel this would be the result!

stay on top of your credit reports. in some cases, the deletes have been known to 'reappear' in a few years.

Graplr · #7 06-24-2010, 09:45 PM

Quote:

Originally Posted by aklim

Think about it this way, if you are having a poor credit score, doesn't it show you have a problem handling money? If so, aren't you more tempted to fudge a few claims? If I owe big bucks, am I more likely than someone who is fine in the financial sense to say that I lost $2000 worth of items as opposed to really $500?

I think it is about actuarial science where they deem you more or less likely because of this or that.

So independantly wealthy people must pay through the wazoo for insurance then, correct? They never need to borrow money so they don't have a credit score, thus they should pay insanely high insurance rates, right? Doubt it.

Skid Row Joe · #8 06-24-2010, 09:54 PM

Quote:

Originally Posted by Graplr

So independantly wealthy people must pay through the wazoo for insurance then, correct? They never need to borrow money so they don't have a credit score, thus they should pay insanely high insurance rates, right? Doubt it.

You don't have to borrow money to have a reasonably acceptable credit score. Mine was 801, before I ever borrowed a nickel. I wouldn't say I'm independantly wealthy, but I may be getting close. Credit scores may suffer for those among us who carry no debt. It remains to be seen if we're penalized as poor credit risks.....LOL!

aklim · #9 06-24-2010, 10:51 PM

Quote:

Originally Posted by Graplr

So independantly wealthy people must pay through the wazoo for insurance then, correct? They never need to borrow money so they don't have a credit score, thus they should pay insanely high insurance rates, right? Doubt it.

Borrowing money is but one aspect of the whole thing. Simply borrowing money is not the issue. The issue is whether you can borrow and pay it back properly.

Skid Row Joe · #10 06-24-2010, 10:00 PM

Quote:

Originally Posted by HuskyMan

all insurance companies use credit scores to determine the rates you pay. some insurance company bean counter decided that how well you pay your bills somehow determines the probability of you making a claim.

in the world of insurance, bad credit means you will probably be making a LOT of claims.

I'd like to see the science behind that nexus, but something tells me I"ll be six foot in the ground before that happens.

The insurance industry has determined that financially-strapped, slow-pay or no-pay individuals are also deficient or poor risks in other areas of their life......imagine that?