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jdsays
Posts: 91
Registered: ‎05-08-2009
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Re: Don't Cancel Credit Cards!


Smrtshppr43 wrote:

They don't. They care about your fico score. Evidently they think that people with bad credit are bad insurance risks also, so if your credit sucks, you pay higher insurance premiums. That is my one and only quarrell with Dave Ramsey. He goes on and on about how his fico is zero and a afico score is an "I love debt" score. No, for me, it's an "I like lower insurance premiums" score. So. for those of us who are not multi millionaires like him, we need to have a good fico as we can.

 

Sorry that happened to you. I just closed my Merrick card today. They did not give one whip about my decision to close it if they would not take away the annual fee. They could not care less. I say good riddance to them. I just refionanced my house to 4.5, and opened about $25000 worth of credit limit cards in the last month, so I think I can recover from the small loss my fico might take from closing that little stinking Merrickl card with a limit of only $1350

 

Thats why I enjoy living in Massachusetts.  The state does not allow insurance companies to use credit score in the pricing models.  I dont agree with companies who use credit and income to base their insurance premiums.  And I also work at a large insurance company, and its definitely not necessary to use credit.

Starting Score: EQ: 590 TU: 599
Current Score: EQ: 642 TU: 683
Goal Score: 720 by 12/31/10


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Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: Don't Cancel Credit Cards!


l9ikjam wrote:
Sounds like u need to end the relation with the insurance company. Sounds like they just wanted a reason to get more money out of u.

 

I agree with you...I'd be shopping for a new insurance company.
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
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Re: Don't Cancel Credit Cards!


SocalMark wrote:
Please someone explain why the insurance company cares about credit cards?

Not like Warren needs my money and this isn't a paid endorsement but I have had Geico for car insurance for 6 years and they have never so much as given me even a soft pull on any credit report.

Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
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Re: Don't Cancel Credit Cards!


thoughts1 wrote:

people forget average age of accounts is not affected by closing a card for 10 years!

that's the single most overlooked thing when someone is afraid of closing cards, because they think it affects it right away.

i'm all for closing cards that don't work for you, that don't grow with you, that have no rewards, etc.

Message Edited by thoughts1 on 06-24-2009 09:55 PM

In most cases closed accounts will remain for 10 years. They have on EX and TU but EQ has deleted 8 accounts prematurely on my reports. Some had as many as 5 years left to remain most had 3 years left. If you care to keep the age of your accounts up it might be best to leave them open. If they are below the average age close at will.

Frequent Contributor
dallasjetfan
Posts: 497
Registered: ‎03-06-2007
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Re: Don't Cancel Credit Cards!

To me, it has been worth it to take the hit and cancel some of my cards.  Especially those that have given me a CLD!!    Your score will recover quickly!
Barclays US Air $15K| TTCU $15K| Chase Slate $10K| Citi Simplicity $10K| AMEX BCE $10K| Discover IT $6K
Senior Contributor
score_building
Posts: 3,560
Registered: ‎01-10-2008
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Re: Don't Cancel Credit Cards!

just to echo PP if younger than AAoA cancel at will.  if messing w/ AAoA projecting up to 10 years i'd keep in mind CLD is more of a short term behaviour that can vary over time.

 

when for eg. you factor in the cli you may've received in a few months had you not closed would closure have been worth the planned 'retribution' against ccc. 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Don't Cancel Credit Cards!

It doesn't look as though anyone has referenced fused's link:

Closing Credit Cards

The issues that arise when closing a credit account can be counter-intuitive, and this thread is great for helping you think through the implications.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
lessons_learned
Posts: 312
Registered: ‎08-23-2008
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Re: Don't Cancel Credit Cards!

I have Geico, and I saw a soft pull on my report.
Where I was 8/22/08 TU 581 EQ 554 EX 615
Where I am 7/30/09 EX 737 (FAKO) EQ 689 TU 745
Can't wait to see what my scores will be when all my accounts hit the 1 year mark!
Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
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Re: Don't Cancel Credit Cards!

So, SylviaLynn,

 

Can you say what insurance company you were working with?

 

Okay.  How about starts with?  Has so many letters?  Rhymes with?  Just interested.

Just puttin' syrup on something, don't make it pancakes.
Frequent Contributor
lajntx
Posts: 267
Registered: ‎06-26-2009
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Re: Don't Cancel Credit Cards!

" I have had Geico for car insurance for 6 years and they have never so much as given me even a soft pull on any credit report. "

 

That's because you came in when they didnt, and now they do since so many lawsuits in the years since have gone in favor of the insurance companies. The only way around it with Geico that I am aware of is on the online quotes and not give your SSN and take the standard rate for your driving record. Not sure if that loop hole is still open though. Giving Geico credit though ... they only check credit the one time you get a quote unlike some other large nameless insurance companies out there ( cough Allstate, cough, State Farm, cough, Farmers, cough, Safeco,  cough, Farm Bureau, cough ) whom may at times re-check your credit at renewel time at their discretion.  I worked for Geico  in claims, and got to see first hand  the company swirl around the porcelin bowl before finally flushing out and become an ATM for uncle warren to buy things with. To be honest with you, if you want a better non agent auto insurance company the better choices are either Amica or Erie ( if you are lucky live in their service areas ) or USAA if you are a service member. When it comes to claims.... you will be glad you dont have Geico if you have those instead. Geico is ok with the general everyday stuff claims wise, but when it becomes a claim in an iffy grey area, or serious dispute, you will find that this company doesnt move very fast and it gets old talking to someone new every single time you have a conversation with the company having to completely repeat yourself.

 

EQ- 647, EX- 641, TU- 644
Sept `13 - ZERO Debt, 100% Liquid, AND a climbing credit score. Eat your heart out Dave Ramsey!

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