topic Re: Hilarious CreditKarma changes in Understanding FICO® Scoring

Hilarious CreditKarma changes

MidnightVoice — Tue, 29 Apr 2014 13:31:00 GMT

Just logged in to CK for my weekly update:

TU score _ -1

Vantage Score _ +41

Autoinsurance score _ -55

Home Insurance score _ -2

Dontcha just love scredit scores?

Re: Hilarious CreditKarma changes

Involver — Tue, 29 Apr 2014 15:14:54 GMT

Especially ones that don't matter at all.

Re: Hilarious CreditKarma changes

pizzadude — Tue, 29 Apr 2014 15:25:35 GMT

Looks like you won't be saving a bundle on your car insurance.

Re: Hilarious CreditKarma changes

TRC_WA — Wed, 30 Apr 2014 14:17:44 GMT

@pizzadude wrote:

Looks like you won't be saving a bundle on your car insurance.

Always wondered about that.

I got my renewal offer yesterday with the "your credit score is indicative of auto insurance claim risk."

How so? Are they paranoid of insurance fraud?

Re: Hilarious CreditKarma changes

Revelate — Wed, 30 Apr 2014 15:21:51 GMT

@TRC_WA wrote:
@pizzadude wrote:

Looks like you won't be saving a bundle on your car insurance.
Always wondered about that.

I got my renewal offer yesterday with the "your credit score is indicative of auto insurance claim risk."

How so? Are they paranoid of insurance fraud?

Not certain, people that are sloppy in one area of life might be sloppy in another? I have a tough time drawing any conclusions about driving habits based on credit score other than some ugly redlining type scenarios. Sort of irrelevant in my case since California doesn't allow a credit pull for insurance purposes, my tax dollars at work I guess.

More cynically, could just be an excuse to charge some people more.

Re: Hilarious CreditKarma changes

Gunnar419 — Wed, 30 Apr 2014 16:31:18 GMT

@MidnightVoice wrote:
Just logged in to CK for my weekly update:

TU score _ -1
Vantage Score _ +41
Autoinsurance score _ -55
Home Insurance score _ -2

Dontcha just love scredit scores?

No wonder credit newbies are always so confused!

I have to admit that CK auto insurance scores are a perpetual thorn in my brain. My real scores, and even my CK TU FAKO are all edging toward 800 and have never been below 700, but my CK auto insurance score has been in the dumpster for years. And no, I haven't had a single accident, ticket, or insurance claim in more than 25 years. It's completely irrational.

When I look up articles on auto insurance scoring, all they ever say is "improve your credit and you'll improve your auto score." Yeah, that's really helpful. How much above 790 does it have to be before I don't look like an auto insurance risk?

Re: Hilarious CreditKarma changes

Revelate — Wed, 30 Apr 2014 16:33:39 GMT

@Gunnar419 wrote:
@MidnightVoice wrote:
Just logged in to CK for my weekly update:

TU score _ -1
Vantage Score _ +41
Autoinsurance score _ -55
Home Insurance score _ -2

Dontcha just love scredit scores?
No wonder credit newbies are always so confused!

I have to admit that CK auto insurance scores are a perpetual thorn in my brain. My real scores, and even my CK TU FAKO are all edging toward 800 and have never been below 700, but my CK auto insurance score has been in the dumpster for years. And no, I haven't had a single accident, ticket, or insurance claim in more than 25 years. It's completely irrational.

When I look up articles on auto insurance scoring, all they ever say is "improve your credit and you'll improve your auto score." Yeah, that's really helpful. How much above 790 does it have to be before I don't look like an auto insurance risk?

I think not looking like an insurance risk to an insurance company has more to do with your state of aliveness rather than credit score or anything else .

Dead people don't cause accidents! Just sayin...

Re: Hilarious CreditKarma changes

Shogun — Wed, 30 Apr 2014 19:15:30 GMT

It's meant to be confusing, because knowledge is power. The less we know.......

Re: Hilarious CreditKarma changes

Anonymous — Sat, 03 May 2014 00:01:25 GMT

@Revelate wrote:
@TRC_WA wrote:
@pizzadude wrote:

Looks like you won't be saving a bundle on your car insurance.
Always wondered about that.

I got my renewal offer yesterday with the "your credit score is indicative of auto insurance claim risk."

How so? Are they paranoid of insurance fraud?
Not certain, people that are sloppy in one area of life might be sloppy in another? I have a tough time drawing any conclusions about driving habits based on credit score other than some ugly redlining type scenarios. Sort of irrelevant in my case since California doesn't allow a credit pull for insurance purposes, my tax dollars at work I guess.

More cynically, could just be an excuse to charge some people more.

I've read that your credit score – auto or otherwise – has more to do with the likelihood that you'll file a claim. People with high credit scores are financially sound, and more likely to have the cash around to repair relatively minor damage to their cars and/or the cars of anyone involved in an accident with them. Insurance companies assume that you'll take the least expensive route you can, and for those with spare money it's frequently cheaper in the long-run to pay out-of-pocket than to file a claim and have premiums skyrocket. People with low credit scores (and presumably less money) don't have the luxury of that option and are forced to rely in their insurance all the time, every time. As a result, the insurance company charges them more in anticipation of bearing the weight of more claims.

Re: Hilarious CreditKarma changes

Revelate — Sat, 03 May 2014 05:36:00 GMT

@Anonymous wrote:
@Revelate wrote:
@TRC_WA wrote:
@pizzadude wrote:

Looks like you won't be saving a bundle on your car insurance.
Always wondered about that.

I got my renewal offer yesterday with the "your credit score is indicative of auto insurance claim risk."

How so? Are they paranoid of insurance fraud?
Not certain, people that are sloppy in one area of life might be sloppy in another? I have a tough time drawing any conclusions about driving habits based on credit score other than some ugly redlining type scenarios. Sort of irrelevant in my case since California doesn't allow a credit pull for insurance purposes, my tax dollars at work I guess.

More cynically, could just be an excuse to charge some people more.
I've read that your credit score – auto or otherwise – has more to do with the likelihood that you'll file a claim. People with high credit scores are financially sound, and more likely to have the cash around to repair relatively minor damage to their cars and/or the cars of anyone involved in an accident with them. Insurance companies assume that you'll take the least expensive route you can, and for those with spare money it's frequently cheaper in the long-run to pay out-of-pocket than to file a claim and have premiums skyrocket. People with low credit scores (and presumably less money) don't have the luxury of that option and are forced to rely in their insurance all the time, every time. As a result, the insurance company charges them more in anticipation of bearing the weight of more claims.

Interesting, certainly a credible theory which I hadn't considered. Thanks!

Re: Hilarious CreditKarma changes

Remember0 — Sun, 04 May 2014 07:02:08 GMT

I'll join the club. My regular scores (and CK's TU) are generally 740+.

But CK shows my auto insurance in the crapper ("poor"). Curiosly though, my home insurance score is in the excellent category. What on earth is going on?

I think a big part of this maybe that insurance scores like to see long histories and few new apps? My AAoA is only 1.5 years, and I have a bunch of new accounts (only 21 yrs. old).

Also I hear that a gas card helps raise auto insurance FICO? But does anyone have a gas card that can tell me if it even reports differently on their credit report? I assume a gas card would report as revolving just like everything else?

Re: Hilarious CreditKarma changes

Revelate — Sun, 04 May 2014 16:47:05 GMT

@Remember0 wrote:
I'll join the club. My regular scores (and CK's TU) are generally 740+.

But CK shows my auto insurance in the crapper ("poor"). Curiosly though, my home insurance score is in the excellent category. What on earth is going on?

I think a big part of this maybe that insurance scores like to see long histories and few new apps? My AAoA is only 1.5 years, and I have a bunch of new accounts (only 21 yrs. old).

Also I hear that a gas card helps raise auto insurance FICO? But does anyone have a gas card that can tell me if it even reports differently on their credit report? I assume a gas card would report as revolving just like everything else?

Where'd you hear that?

Re: Hilarious CreditKarma changes

Remember0 — Sat, 07 Jun 2014 06:10:10 GMT

Sorry to bump this thread from a month ago, but here:

http://editorial.autos.msn.com/article.aspx?cp-documentid=435604

"The ChoicePoint Attract scoring model, with dozens of separate factors, has the most complicated formula of any we analyzed. It dings you for having department-store charge cards and auto loans from automaker finance companies such as GMAC, for not having an oil company credit card, and for so much as touching finance-company credit, which may include incentive installment loans from appliance, electronics, or jewelry stores."

Hence my question regarding if say the Shell or Mobil gas cards report differently on a credit report...like how do they tell you have an oil company credit card? Shell and Exxon for example are backed by Citi. It wouldn't shock me if it reported as a retail citi card, unless credit reports have a special Gasoline category.

Re: Hilarious CreditKarma changes

Revelate — Sat, 07 Jun 2014 06:44:26 GMT

@Remember0 wrote:
Sorry to bump this thread from a month ago, but here:

http://editorial.autos.msn.com/article.aspx?cp-documentid=435604

"The ChoicePoint Attract scoring model, with dozens of separate factors, has the most complicated formula of any we analyzed. It dings you for having department-store charge cards and auto loans from automaker finance companies such as GMAC, for not having an oil company credit card, and for so much as touching finance-company credit, which may include incentive installment loans from appliance, electronics, or jewelry stores."

Hence my question regarding if say the Shell or Mobil gas cards report differently on a credit report...like how do they tell you have an oil company credit card? Shell and Exxon for example are backed by Citi. It wouldn't shock me if it reported as a retail citi card, unless credit reports have a special Gasoline category.

Would suggest asking regarding the gas cards reporting over in the CC forum, maybe someone has one there.

That said, I am certainly not going to optimize my credit report based on some second or third tier auto insurance score (for that matter, what's claimed to be on there via the Intarwebz), no thanks. Fortunately it's not relevant to me in California.

Re: Hilarious CreditKarma changes

Remember0 — Sun, 08 Jun 2014 08:13:41 GMT

Fair enough. For all we know, it could be voodoo. I'll post it in the CC forums and see if anyone knows anything.

Re: Hilarious CreditKarma changes

vanillabean — Sun, 08 Jun 2014 15:29:36 GMT

@Remember0 wrote:

"The ChoicePoint Attract scoring model, with dozens of separate factors, has the most complicated formula of any we analyzed. It dings you for having department-store charge cards and auto loans from automaker finance companies such as GMAC, for not having an oil company credit card, and for so much as touching finance-company credit, which may include incentive installment loans from appliance, electronics, or jewelry stores."

Check ... check ... check ... check. Oh boy, I'm in big trouble now!

@Anonymous wrote:

I've read that your credit score – auto or otherwise – has more to do with the likelihood that you'll file a claim. People with high credit scores are financially sound, and more likely to have the cash around to repair relatively minor damage to their cars and/or the cars of anyone involved in an accident with them. Insurance companies assume that you'll take the least expensive route you can, and for those with spare money it's frequently cheaper in the long-run to pay out-of-pocket than to file a claim and have premiums skyrocket. People with low credit scores (and presumably less money) don't have the luxury of that option and are forced to rely in their insurance all the time, every time. As a result, the insurance company charges them more in anticipation of bearing the weight of more claims.

The financial acccounts, including our mortgage and the above car installment loan, of DW and me are mostly shared or intertwined, yet her auto and home insurance scores are lower than mine. I have no idea why, unless backseat driving is taken into account.

Re: Hilarious CreditKarma changes

myjourney — Sun, 08 Jun 2014 19:20:07 GMT

@Anonymous-own-fico wrote:
@Remember0 wrote:

"The ChoicePoint Attract scoring model, with dozens of separate factors, has the most complicated formula of any we analyzed. It dings you for having department-store charge cards and auto loans from automaker finance companies such as GMAC, for not having an oil company credit card, and for so much as touching finance-company credit, which may include incentive installment loans from appliance, electronics, or jewelry stores."

Check ... check ... check ... check. Oh boy, I'm in big trouble now!

@Anonymous wrote:

I've read that your credit score – auto or otherwise – has more to do with the likelihood that you'll file a claim. People with high credit scores are financially sound, and more likely to have the cash around to repair relatively minor damage to their cars and/or the cars of anyone involved in an accident with them. Insurance companies assume that you'll take the least expensive route you can, and for those with spare money it's frequently cheaper in the long-run to pay out-of-pocket than to file a claim and have premiums skyrocket. People with low credit scores (and presumably less money) don't have the luxury of that option and are forced to rely in their insurance all the time, every time. As a result, the insurance company charges them more in anticipation of bearing the weight of more claims.

The financial acccounts, including our mortgage and the above car installment loan, of DW and me are mostly shared or intertwined, yet her auto and home insurance scores are lower than mine. I have no idea why, unless backseat driving is taken into account.

Lol could be a deciding factor

Re: Hilarious CreditKarma changes

mtrsprt — Tue, 10 Jun 2014 11:31:41 GMT

Believe it or not. 50% or more of your auto insurance premium is based on credit score. While statistics show truth, it's not fair to many.

Re: Hilarious CreditKarma changes

-NewGuy- — Tue, 10 Jun 2014 21:15:54 GMT

Except in California and I think two other states where it isn't allowed.

Re: Hilarious CreditKarma changes

Involver — Tue, 10 Jun 2014 22:24:17 GMT

I keep getting solicited by Allstate via CK since so have a perfect auto score so I thought I would experiment a little bit. I know Allstate has softed my (now frozen) EX in the past so I wanted to see how much my rates would quote without them pulling a credit score.

$640 deposit and $517 a month. Outrageous.

I pay 78 at Geico lol. In IL.