06-25-2009 07:06 AM
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.
06-25-2009 11:26 AM
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.
06-25-2009 02:06 PM
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.
06-25-2009 02:10 PM
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.
06-25-2009 04:44 PM
06-25-2009 05:13 PM
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.
06-25-2009 05:18 PM
07-07-2009 11:34 AM
07-07-2009 03:31 PM
Can you say what insurance company you were working with?
Okay. How about starts with? Has so many letters? Rhymes with? Just interested.
07-07-2009 04:03 PM
" 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.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.