beware "credit-based" insurance

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 >> Stay informed about: beware "credit-based" insurance 

Steve T wrote:
> "Bob" <bronzorb.RemoveThis@yahoo.com> wrote:
>
> :Progressive Insurance Company raised my motorcycle insurance rates, sending
> :me a notice of "Adverse Action," because there had been two credit inquiries
> n my credit report within the past 2 years. They said that credit
> :inquiries "correlates" with higher risk for claims.
> :
> :I have an almost-perfect credit score over 800, and a perfect driving
> :record--over 40 years' driving only a couple of parking tickets. This is a
> :major scam I'm sure.
> :
> :Check your motorcycle policy to be sure they aren't penalizing you for
> :having opened a Sears MasterCard and/or taking a loan to buy a motorcycle
> :within the past 2 years or so, as was the "crime" I committed!
> :
>
> I posted this a few weeks ago. Just call them up and they will drop
> your rate. The main factor in raising your risk factor may be that
> the credit reporting agency doesn't report any credit before the age
> of 30. Since the agencies only report 20 years of credit history,
> everybody over the age of 50 is in that boat. If you don't call
> them, they take an extra $50. If you do, they put the rate back
> where it belongs.

Credit reporting agencies have no such "don't report under the age of
30" rule and never have. Also, the agencies do not report "20 years" of
credit history.

- Active tradelines stay on your report for as long as they are active.
- When a tradeline becomes inactive, it stays on your report for 7 years
from the last reporting date.
- Bankruptcies stay on your report for 10 years.
- Hard inquiries stay on your report for 2 years, but only the previous
6 months is used in calculating a credit score. Anything under 3-5
inquiries will have minimal-to-no impact on your score.
- Soft inquiries only show up when YOU request a copy of your credit
report. Self-inquiries do not show up to any lenders and do not affect
your credit score.
 >> Stay informed about: beware "credit-based" insurance 

Bob wrote:
> Progressive Insurance Company raised my motorcycle insurance rates, sending
> me a notice of "Adverse Action," because there had been two credit inquiries
> on my credit report within the past 2 years. They said that credit
> inquiries "correlates" with higher risk for claims.
>
> I have an almost-perfect credit score over 800, and a perfect driving
> record--over 40 years' driving only a couple of parking tickets. This is a
> major scam I'm sure.
>
> Check your motorcycle policy to be sure they aren't penalizing you for
> having opened a Sears MasterCard and/or taking a loan to buy a motorcycle
> within the past 2 years or so, as was the "crime" I committed!
>
>
I just switched to geico from progressive cause they raised my rates for
some unknown reason. 50 bucks cheaper for me.
 >> Stay informed about: beware "credit-based" insurance 

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 >> Stay informed about: beware "credit-based" insurance 

On Tue, 21 Aug 2007 13:23:40 -0400, Steve T <rm2 RemoveThis @no48panspam.com>
wrote:

>What the Progressive guy told me was that the agency wasn't
>reporting any of my credit history before the age of 30... Not
>because they don't report that stuff, but because it so long ago. It
>seems to me that pretty much everybody over 50 should be in that
>boat.

Uh, why listen to an insurance salesman about your credit score?? All
they know is what other salespeople tell them.
 >> Stay informed about: beware "credit-based" insurance 

"Bob" <bronzorb.TakeThisOut@yahoo.com> wrote

> Progressive Insurance Company raised my motorcycle insurance rates,
sending

They were hoping you wouldn't notice.
It's a variation of bait and switch.
Vote with your check book; take your business elsewhere.
 >> Stay informed about: beware "credit-based" insurance 

"Steve T" <rm2.DeleteThis@no48panspam.com> wrote in message
news:mj7mc35j32ar7inr71s9e9hopj6qijhghd@4ax.com...
> Polarhound <polarhound.DeleteThis@comcast.net> wrote:
>
> :Credit reporting agencies have no such "don't report under the age of
> :30" rule and never have. Also, the agencies do not report "20 years" of
> :credit history.
>
> My progressive bill came through with a drop in rating because of
> two credit factors:
>
> 1. I only have two credit instances going on (2 credit cards). Since
> I have no loans of any kind and have no balances on the credit
> cards, I fall well below the average.
>
> 2. No credit history before the age of 30. I had credit, but I no
> longer maintain any of those accounts so they are no longer
> reported.
>
> What the Progressive guy told me was that the agency wasn't
> reporting any of my credit history before the age of 30... Not
> because they don't report that stuff, but because it so long ago. It
> seems to me that pretty much everybody over 50 should be in that
> boat.
>
> The guy asked me when I first got credit. I told him a Sears card in
> 1970 and he said OK and dropped my rate.
>

You got to be careful about those damn Sears cards.

A couple months ago Sears went on a campaign to put all their
dept. store cards under VISA. They sent out new VISA cards
with Sears name on them.

As I did not want yet another visa card I ignored this.

About 6 months later I got a notice from them that they are
cancelling the card for non-use.

Wonderful. So now I have a credit card cancellation on my
credit report for a card I never asked for in the first place.

Way to go Sears. I will definitely show my appreciation for
this by NOT shopping there during the next 4 months.


Ted
 >> Stay informed about: beware "credit-based" insurance 

I did take my business elsewhere, and got my motorcycle insurance for almost
1/2 of what Progressive was charging me. But I'm told 92% of insurers in my
state have already gone over to credit-based assessment of risk.

In reply to previous posters, yes, my Experien credit report/history did not
include ANYTHING prior to my age 31, even though I had bought a house, 2
cars, etc. etc. all on credit--paid ALL my bills on time, every time. I
filed an age discrimation complaint in my state and "won"--the state sent
Progressive a reminder to be considerate of the age of the insured! (I'm
5.

I have come to the conclusion that this "credit-based" jive is a clever
scheme to force young people to get credit early, even before they have any
remote hope of being able to repay. It's a scheme, because unlike my
generation from the 1960's who could get a job and start paying back our
loans on time, today's young people generally (doctors, lawyers and
trust-funders excluded) are going to ring up astounding, unpaid debt, making
them instantly in the higher-rated categories, even if relieved by
bankruptcy, etc.. It's far more cynical than I first thought. And to think
they are called "Progressive"!

My two youngest kids who are college students and have piddly part time jobs
are being sent inducements to get VISA cards, MasterCards, etc. on their own
to "establish credit early." You don't need to be a conspiracy theorist
to see the trickery here.
 >> Stay informed about: beware "credit-based" insurance