Prime cards only?

[Remedios]

Because according to LN, you're a higher risk because if you have store cards, you're poorer, less educated and more likely to file a claim for financial gain. Also, presence of store cards indicates you're in financial distress. I wish I was joking 

There are very few things in life I hate more than LN. 

With that said, they award extra points (though consumer can no longer get their own score from LN) if you have aircraft or watercraft. 

I wonder how they would feel about Boats'R'Us card, if there was one. 

[Anonymous]

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@Remedios wrote:

Because according to LN, you're a higher risk because if you have store cards, you're poorer, less educated and more likely to file a claim for financial gain. Also, presence of store cards indicates you're in financial distress. I wish I was joking 

There are very few things in life I hate more than LN. 

With that said, they award extra points (though consumer can no longer get their own score from LN) if you have aircraft or watercraft. 

I wonder how they would feel about Boats'R'Us card, if there was one. 

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LOL. Whats next... If you own a sub-compact car you are too poor to be approved for a Siggy but perfect to pay more out of pocket for higher APRs and insurance rates? No mention of the sky high repo rates for boats and airplanes.

[longtimelurker]

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@Remedios wrote:

Because according to LN, you're a higher risk because if you have store cards, you're poorer, less educated and more likely to file a claim for financial gain. Also, presence of store cards indicates you're in financial distress. I wish I was joking 

There are very few things in life I hate more than LN. 

With that said, they award extra points (though consumer can no longer get their own score from LN) if you have aircraft or watercraft. 

I wonder how they would feel about Boats'R'Us card, if there was one. 

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It's all meant to be somewhat data driven, like FICO.    Data mining shows some correlations between various factors and outcomes, not necessarily causal but strong enough for insurance companies to be interested.     

[FieryDance]

How about store debit cards such Nordstrom retail card or Target RedCard?  How damaging are those? 

[wasCB14]

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@longtimelurker wrote:

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@Remedios wrote:

Because according to LN, you're a higher risk because if you have store cards, you're poorer, less educated and more likely to file a claim for financial gain. Also, presence of store cards indicates you're in financial distress. I wish I was joking 

There are very few things in life I hate more than LN. 

With that said, they award extra points (though consumer can no longer get their own score from LN) if you have aircraft or watercraft. 

I wonder how they would feel about Boats'R'Us card, if there was one. I used to have a Brooks Brothers store card. Same idea. And there are the once-fashionable $30k Barneys cards.

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It's all meant to be somewhat data driven, like FICO.    Data mining shows some correlations between various factors and outcomes, not necessarily causal but strong enough for insurance companies to be interested.     

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[VanderSnoot]

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@FieryDance wrote:

How about store debit cards such Nordstrom retail card or Target RedCard?  How damaging are those? 

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My understanding is that stores issue two types of cards: 1) cards that are only good at that particular store (e.g. Saks First) and 2) cards that are good anywhere (e.g. Saks World Elite Mastercard) because they are part of a network (e.g. Mastercard, Visa). The store-specific cards are classified as retail cards, but the co-branded network cards are classified as credit cards. All retail cards will damage these rarely used scores (like LN) and your insurance score.

However, I have the Saks World Elite MC, and it shows up as a retail card on Experian/CCT. If anyone could shed light, I'd appreciate it.

[AverageJoesCredit]

If your retail card is a Visa or MC it is a bank card.

[Remedios]

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@longtimelurker wrote:

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@Remedios wrote:

Because according to LN, you're a higher risk because if you have store cards, you're poorer, less educated and more likely to file a claim for financial gain. Also, presence of store cards indicates you're in financial distress. I wish I was joking 

There are very few things in life I hate more than LN. 

With that said, they award extra points (though consumer can no longer get their own score from LN) if you have aircraft or watercraft. 

I wonder how they would feel about Boats'R'Us card, if there was one. 

---

It's all meant to be somewhat data driven, like FICO.    Data mining shows some correlations between various factors and outcomes, not necessarily causal but strong enough for insurance companies to be interested.     

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Somewhat being the key word

Data is only as good as humans who interpret it, or if the interpretation benefits those for whom it's intended.

Once cherry picking starts, data is turned into conjecture. If one wanted to, they could "establish" causality between any two events.  

[FieryDance]

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@VanderSnoot wrote:

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@FieryDance wrote:

How about store debit cards such Nordstrom retail card or Target RedCard?  How damaging are those? 

---

My understanding is that stores issue two types of cards: 1) cards that are only good at that particular store (e.g. Saks First) and 2) cards that are good anywhere (e.g. Saks World Elite Mastercard) because they are part of a network (e.g. Mastercard, Visa). The store-specific cards are classified as retail cards, but the co-branded network cards are classified as credit cards. All retail cards will damage these rarely used scores (like LN) and your insurance score.

However, I have the Saks World Elite MC, and it shows up as a retail card on Experian/CCT. If anyone could shed light, I'd appreciate it.

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I checked out some threads quoted and they are fascinating to say the least.  Amazing how much information those big brothers keep of us without telling us. 

Now the Target RedCard has several versions to my best understanding. 

The first one is a debit card linked to a checking account; it is not a credit card and doesn’t have a credit limit.  It can only be used at Target.  It does NOT show up on credit reports from major bureaus such as EX, EQ, TU.  Not sure about LN or others. 

The second one is a credit card but not Visa or MasterCard or Discover or Amex.  It is issued by TD bank and has a credit limit. It too can only be used at Target. It does show up on three major credit reports.  

The third one is a MasterCard credit card.  It is also issued by TD bank and has a credit limit.  It can be used anywhere MasterCard is accepted. It also shows up on all three major credit reports. 

I would venture a guess the second one is most damaging one and the first and the third might be ok. 

[Anonymous]

@Remedios nailed it in post 28, saying essentially that one can find a correlation anywhere if they want badly enough to find it, especially when it serves as a vehicle to drive profits up. Insurance using credit reports in the way that they do is borderline fraud.