Insurance and Credit

Insurance and credit

Credit is sometimes a controversial subject that few people really understand. For those familiar with the financial service industry, credit is a simple matter, but not everyone is familiar. For most, credit means nothing more than credit score, a seemingly arbitrary rating of a person’s financial value. Credit is somewhat more complex than that, however, especially when it comes to the insurance industry and a company’s willingness to take on financial risks. A credit score is a gauge of a person’s overall financial risk. A low credit score means that…

Read More

Insurance and credit score make a troublesome mix

Credit score and its use by the insurance industry is not well understood by consumers Insurance and credit score are too things that often intermingle without much notice. Many insurance companies use credit score and other socio-economic information to price policies. This is somewhat common in some U.S. states, but it is also banned in much of the country due to the fickle nature of credit and the relatively loose understanding that consumers have regarding their own credit scores. Suze Orman, a prominent financial advisor, has been calling into question…

Read More