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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (26362)	12/31/2004 4:09:49 PM
From: Tradelite	Read Replies (2) \| Respond to of 306849

<<Newer credit rating systems, such as Experian (ex-TRW), are based on lunatic assumptions. Experian marks you down for having large unused lines of credit.>> I assumed this to be true, as well. However, recently I called a local insurance agency to get a new quote on home/auto insurance, just to check on whether I should stay with another agency I've been with for many years. When I received the quote, I asked whether our household credit had been checked and whether this affected the quote in any way. I was curious for several reasons. For one thing, I've read insurance companies regard credit checks as important to judging the risk of doing business with particular people. Also, we have recently grown to using four credit cards instead of only two (all of which provide rebates on purchases), plus we have huge and growing lines of credit granted by these crazy credit card companies, we use very little of this credit, and we always pay off our credit bills in full each month. We also have never in our lives had a car loan, and we no longer have a mortgage loan. There seemed to be a possibility we would be regarded as pariahs (or at least suspicious) by any new potential creditor. I was told our credit had indeed been checked and this had no impact on the insurance quotes we received. Wonder if I was told the truth about this? And why are the credit card companies continually soliciting our business, while also granting more and more rebates on purchases, when we pay no interest to any credit card company for anything at all? I realize they get fees from the retailers we patronize, but at some point, you'd think they'd stop giving rebates to people who never run up debt. However, apparently not. I remain in rebate heaven, for inexplicable reasons.