Credit scores and insurance

Aabidano · Post by **Aabidano** » July 11, 2006, 11:33 am

I went to switch back to Allstate on my cars today, and part of the rate determinination was based my credit score. A perfect score would have netted me a rate about $100 every six months less than what I got.

I went and pulled my transunion score which is what she used, it came back 700+ which I thought was in the very good range. There's nothing negative on the report for the last 7 years.

I thought the cap was 750, they show it going up to 850.

Can someone explain credit reports?

Canoe · Post by **Canoe** » July 11, 2006, 11:39 am

I can't give you a definitive explanation, other than to say their are different types of credit reports.

For example, if you go to buy a new car at a dealership, they are going to run an "Auto" credit report - which is different than an overall credit report (don't ask my how it's different - no clue).

There will be varying scores depending on the type of credit report that you run.

That being said, i'm not sure the specialized versions (Auto, home owner, etc) are readily available to everyday people.

I know I didn't answer your question fully, but it's the best I can do!

I ran into this recently (had great credit either way, but was confused why the score was different) when I bought a new truck last week. The "business manager" at the dealership showed me the credit report he ran, so I could see he wasn't fibbing

Pherr the Dorf · Post by **Pherr the Dorf** » July 11, 2006, 12:02 pm

We learned it just the other day, XPN goes to 950, Highest I have seen was in the 880's. Credit is based off total lines of credit/credit balances and how many months on the bureau. After 99 months it cycles and you can no longer get any bump off that line of credit. Also total revolving available, or if you prefer how much of your credit you are NOT using plays a big role in the scoring as well.

Boogahz · Post by **Boogahz** » July 11, 2006, 12:11 pm

An Insurance credit score is not the same as the "credit score" you get when you order your report. Basically, as mentioned above, different factors are taken into consideration for each type of report. Scores may not even exist with your company, but tiers/ratings based on those scores might. Those scores would mean little to nothing to you or another company. Your insurance company is required to inform you of what factors kept you from getting their best rates beyond a simple answer of "your credit score/report." I know that we actually send this out in writing.

Avestan · Post by **Avestan** » July 11, 2006, 1:04 pm

Generally, over 720 is considered very good. It goes up to 850 (or whatever the max is) because there are a lot of people who have decades of great credit + collateral assests like expensive houses that they completely own.

Those people are the safest bets for credit because if something goes wrong, they have backup assets. That is how I understand it anyway.

Aabidano · Post by **Aabidano** » July 11, 2006, 2:23 pm

Boogahz wrote:Your insurance company is required to inform you of what factors kept you from getting their best rates beyond a simple answer of "your credit score/report."

Going to have them send it to me when I go up there this afternoon to sign the paperwork. The rate is still $400 a year less than GEICO for the same coverages.

If they pulled the wife's score as well that could be it, she has no credit history at all.

Boogahz · Post by **Boogahz** » July 11, 2006, 2:44 pm

Each company pulls different information on different people. Some companies may pull it for just one or both of you. That could be what the issue is. Their credit model will be on file with your State Department of Insurance, or the State's version of that Dept.

Spankes · Post by **Spankes** » July 11, 2006, 2:48 pm

As a general rule, it is illegal for them to provide you with the actual report. Many companies will bend the rules and show you the report, but they should not be giving you a copy as they are not a "credit reporting agency."

That is why when someone is denied for credit they get a letter telling them to contact the credit agencies directly to get a copy of the report for free...because the creditor is not allowed to send it to you.

Boogahz · Post by **Boogahz** » July 11, 2006, 2:51 pm

Spankes wrote:As a general rule, it is illegal for them to provide you with the actual report. Many companies will bend the rules and show you the report, but they should not be giving you a copy as they are not a "credit reporting agency."

That is why when someone is denied for credit they get a letter telling them to contact the credit agencies directly to get a copy of the report for free...because the creditor is not allowed to send it to you.

No, they won't provide the actual report, but they may tell you what factors kept you from getting the best rate. As always, the report will have to come from the actual reporting agency.