[dewilson58]

Originally Posted by biker1

We hardly ever use cash. Everything goes on a credit card and we pay the balance every month. Why? Four reasons: you get points/money back from credit card companies, you can dispute the charge if things goes south with a purchase, you will often get an extra year of warranty with appliance purchases, and you can often get included travel insurance.

Yep, Yep, Yep & Yep




My card also provides insurance on your car rental if the rental is charged on their card.

[rrb48310]

Originally Posted by La lamy

I've been debt free for many years now, but I still use a credit card and pay it down every month. That way I still have a credit score, and get dividends pay back on what I spend. Win win.

Agree use other people’s money, get rewards. Why cash in investments earning 8 plus percent, and pay income tax when you can get a loan under four percent. That’s at least a four percent gain.

[noslices1]

It will get you a good interest rate if you buy a new car, or if you shop for auto insurance.

[noslices1]

I am debt free, but use credit cards every month. AMEX card gives me 6% back on all the groceries I buy and when I buy a $50 Gas Card from Publix for $40, I get another 6% off the $40. When I go out to eat, and get Military discounts and BOGO’s and other special meal deals, I get 3% cash back with my B of A Master Card. Also have a Chase Visa card through Amazon that I get Cash back on also. Pay them ALL off every month and some get used a lot. Last year I got $425.00 back from AMEX alone. Credit score last month 833. Paid off my car 3.25% car loan this month, 3 years early, so maybe score will go up again next month. Who knows, but I like using credit and most people do too.

[huange@verizon.net]

Originally Posted by Boilerman

Credit scores are commonly used by insurance companies as a factor in premiums. A higher credit score can mean a lower premium.

Is that what your insurance agent told you?

[Velvet]

Life is good when you don’t need to check your credit score because you already know what it is... for years.

[Boilerman]

Originally Posted by dewilson58

Read the articles and you will learn.

The first report is self-serving. They are a credit reporting service. Duh!!!
The other two reports indicate a carrier might look at credit history, NOT CREDIT SCORE. The number, the score is not used.

It’s unfortunate when people here try to dispute facts and confuse everyone.

You’re saying that the credit history is important but the credit score is not? The credit score is a reflection of your credit history. Duh!!!

Even the title of all three links I provided have “credit score” in the title of the article. The second link is from Consumer Reports and the third link is from Nationwide Insurance. If you don’t think these are reputable sources, search for yourself and you’ll find dozens of other sources that all say the same thing. Your credit score affects your insurance rate.

[dewilson58]

Originally Posted by Boilerman

It’s unfortunate when people here try to dispute facts and confuse everyone.

It's okay, we still love you.

[dewilson58]

Originally Posted by Boilerman

Even the title of all three links I provided have “credit score” in the title of the article. The second link is from Consumer Reports and the third link is from Nationwide Insurance. If you don’t think these are reputable sources, search for yourself and you’ll find dozens of other sources that all say the same thing. Your credit score affects your insurance rate.

If you read past the title, you read:
Your score is used to measure your creditworthiness—the likelihood that you’ll pay back a loan or credit-card debt. But you might not know that car insurers are also rifling through your credit files to do something completely different: to predict the odds that you’ll file a claim. And if they think that your credit isn’t up to their highest standard, they will charge you more, even if you have never had an accident, our price data show.
Cherry-picking about 30 of almost 130 elements in a credit report, each insurer creates a proprietary score that’s very different from the FICO score you might be familiar with, so that one can’t be used to guess the other reliably.


This is one example from the link you suggested.


This concludes the education for today.

[EdFNJ]

Originally Posted by dewilson58

Absolutely false.

Actually true. There is also an "INSURANCE SCORE' which is partially derived from your CREDIT SCORE.

Edmunds

Insurance Score Definition

Edit: So by logic, your insurance score is (partially) determined by your credit (score) therefore you credit rating affects your insurance rate.

[EdFNJ]

Originally Posted by GoodLife

Not so sure paying cash for everything is the smart play, I pay for everything possible with credit card, then pay entire balance at end of month. Zero interest paid, and I keep my cash where it's earning me something for an extra 30 days.

Yep, plus get 2% back on every purchase.

[dewilson58]

Originally Posted by EdFNJ

Actually true. There is also an "INSURANCE SCORE' which is partially derived from your CREDIT SCORE.

Insurance Score Definition

Yes there is an insurance score, however it is not derived by your credit score. Technically, insurance score does not use the credit score number.


Thanks for the definition example.

[dewilson58]

Going deep here.......From NAIC:


In most states, insurers can use your credit-based insurance score to determine your premiums. However, a regular credit score and your credit-based insurance scores are not the same.

[EdFNJ]

Originally Posted by dewilson58

Yes there is an insurance score, however it is not derived by your credit score. Technically, insurance score does not use the credit score number.

Thanks for the definition example.

Oh geez. LOL. You'll really dig deep to prove your point. Insurance SCORE is partly based on CREDIT RATING. Good credit RATING = higher credit score ergo higher credit score affects insurance rates. You're parsing words to make the same point look different than 3 other people but you're still agreeing.



What Is an Insurance Score?

An insurance score, also known as an insurance credit score, is a rating computed and used by insurance companies that represents the probability of an individual filing an insurance claim while under coverage. The score is based on the individual’s credit rating and will affect the premiums they pay for the coverage. A higher score will result in lower premiums and vice versa.

[EdFNJ]

Originally Posted by dewilson58

Yes there is an insurance score, however it is not derived by your credit score. Technically, insurance score does not use the credit score number.

Thanks for the definition example.

The price of peanuts has dropped on the open market.