Posted on 06/02/2022 7:43:08 AM PDT by millenial4freedom
Many of the big auto insurers now use credit scores for setting policy rates.
“When I had paid it off faithfully, he thanked me for bumping his score.”
Exactly. Paid off, but he took a hit when it first went on his credit record.
Well, it seems to me that once you start making payments routinely that should raise the score back up long before you’ve paid the car off - especially if you keep no other credit or pay everything else off each month.
Yes medical is tricky.. First, they didn’t generally take on the debt voluntarily, second, no one tells them what it will cost up front, and third as you point out, hospital/clinic billing leaves TONS to be desired.
The collection companies suck too, all they have to do is say they mailed the 30 day notice to pay before reporting, they don’t have to prove it. many times they are sent to old addresses (if they actually send them) and it’s not until it’s on the credit report and someone checks that it’s found.
I have several lenders that will manually override a decline if the bulk of what is bad is medical collections.
government screwed the pooch on student loans, however they are reported as “deferred” but then some lenders look at them as a 0 payment even though at some point, they will have to pay.
thats the Larry the cable guy effect..
“I believe sometimes you have to wreck the truck to get the insurance money to make the payment on the truck” - larry
the argument is you are more likely to make a claim if you have bad credit than if you have good credit. I have no clue how they came up with this, but that is what they say.
That's exactly what they want. A Social Credit Score.
"I'd better not post that about Trump or we might get rejected for the mortgage"
as someone who sees a lot of credit reports.. the bulk of the medical I see is unpaid copays... most are less than 500 bucks.
sure there is the uninsured guy who fell off a ladder and rang up 300K worth but those are not as often. considering you can now buy insurance after the fact and be covered (thanks Obama)
I can see their rational. If your have good credit that means you are generally managing your life well, not an alcohol, drug addict, losing gambler, jobless drifter, etc. And those types have a much higher statistical probability of getting their vehicle damaged or stolen.
“I am regularly pissed tha my FICO score is much less than my Vantage 3.0 score.”
I’d settle for my credit score being higher than my bowling score.
yup. Insurance companies do everything for a reason. someone ran the numbers ;)
I have a 800+ credit score : )
I pay on time and I have 5 cards of which 3 I do not owe any money on.
The way they score does not make sense as they give you points on using the same credit cards with the rising interest rates vs taking points away for swapping them out for 0% ones.
Swapping out for a new card lowers your score due to the credit inquiry. Do that a few times in a cople of years and that can lower your score by 30 points. Inquires stays there for 2 years. Plus the new card doesnt have the same credit history on it as the old. And if the new card has a lower credit line than the one closed, your overall credit available to used percentage gets worse.
I read that won't happen until next year. Currently, medical bills under $100 are not supposed to be reported.
AFAIK, medical bills aren't reported until six months pass with no payment or payment plan. That is, a bill might never be reported if a patient agrees to pay $20/month (interest-free), for example.
Medical debt should be handled differently from other kinds of debt, especially for life-or-death emergencies. Maybe all medical bills should be reported, but they should be dropped from the credit report altogether as soon as the bill is paid off or resolved.
Plus, some businesses use shady tactics that can ruin a person's credit score. Hospitals and other healthcare businesses can be just as shady.
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