Insurance denial

[QuakerOatmeal]

I purchased a Rolex for myself on saturday as an early birthday present, and on monday I applied to have it insured. This morning I received a denial for my application based on my credit score/factors.

I'm a bit confused because my credit is *fine*, at 700-715, no bankruptcys or anything. Only thing ugly on my report is 1 30 day, and 1 60 day from a while ago, and handful (or two lol) of hard inquiries.

I can see why this would be an issue for a new credit card (those inquiries) but a crappy 10,000 dollar insurance policy? People can buy car insurance/homeowners insurance with crappy credit! 

Ugh. So annoyed this morning.

[Anonymous]

What is the source of your credit scores?

It's also important to understand that score isn't everything.  Two different people can have the same exact score, but possess completely different profiles.

Someone with an thick/aged file with multiple accounts with 90-120 day late payments can have a 760 score, where someone else with a thin/young file that's clean can have the same 760 score.

[Thomas_Thumb]

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@QuakerOatmeal wrote:

I purchased a Rolex for myself on saturday as an early birthday present, and on monday I applied to have it insured. This morning I received a denial for my application based on my credit score/factors.

I'm a bit confused because my credit is *fine*, at 700-715, no bankruptcys or anything. Only thing ugly on my report is 1 30 day, and 1 60 day from a while ago, and handful (or two lol) of hard inquiries.

I can see why this would be an issue for a new credit card (those inquiries) but a crappy 10,000 dollar insurance policy? People can buy car insurance/homeowners insurance with crappy credit! 

Ugh. So annoyed this morning.

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Were the scores you mention from the insurance company? If so, do you know if they are insurance based credit scores from LexisNexis or Transunion? If the scores are ones you pulled independently you need to ask the insurance company the source of their information and what score model they use. Generally this type of insurance relates to a homeowner/renter policy so the CBIS used would be the Home version not, Auto. Note: LexisNexis uses Equifax.

FYI - Credit based insurance scores in the 700 - 715 range can be problematic. It represents high risk for TU CBIS and moderate risk for LN. My guess is the score you mention is a credit score, not an insurance score.

See below. Top graph is TU CBIS, bottom one is LN CBIS based on EQ and other data. The factors and scoring models used for CBIS are quite different from Fico or VantageScore.

[Anonymous]

As BBS asks, we need to know as much as you can tell us about the score you mention.  Questions:

*  Was this score supplied by the company in the denial letter?  You'll be very interested in seeing what this score is and most importantly the scoring model that was you.  If the score was in the denial letter, it was likely the non-FICO LexisNexis score used by the insurance industry. 

*  Had the score been in the denial letter, however, the score would be a precise number, e.g. 703, rather than a range (like the 700-715 you gave).  So I am guessing that the score range is based on you tracking it via some tool on your own over the last several months.  If so, can you tell us what credit monitoring tool you have been using?

[QuakerOatmeal]

The score wasn't supplied in the email, but they stated the credit information was supplied by LexisNexis.

The range I gave (700-715) is the range I've been in across the credit bureaus provided by my credit cards (IE Bank of America/AMEX/Discover etc.) I don't really put much weight on creditkarma or nerdwallet.

Maybe they'll give a more precise explanation in the letter they said they will be mailing to me.

[RobertEG]

If a creditor or insuror has used a credit report as a part of their determination, they are required under the FCRA to include in a denial letter a notice to the consumer of the CRA that the report was obtained from.  That notice does not mean that denial was based soley on the report or score, it only indicates that a credit report was used as a part of their determination, thus affording the consumer the right to send a copy of the denial letter to the identified CRA and obtain a free copy of their current credit report.

There may be other factors that contributed..........

[Anonymous]

So circle back with us when you get the denial letter.  You have a number of people here on this thread who are interested in Credit Based Insurance Scores (CBISs).  We'll be interested everything you can tell us, including the score and the model used.

[Anonymous]

Another thing to consider is if you have any information on chexsystems or early warning services. Items on there typically aren’t on credit report. I don’t know if your insurance company used those at all, will be curious what the letter says

[Thomas_Thumb]

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@QuakerOatmeal wrote:

I purchased a Rolex for myself on saturday as an early birthday present, and on monday I applied to have it insured. This morning I received a denial for my application based on my credit score/factors.

I'm a bit confused because my credit is *fine*, at 700-715, no bankruptcys or anything. Only thing ugly on my report is 1 30 day, and 1 60 day from a while ago, and handful (or two lol) of hard inquiries.

I can see why this would be an issue for a new credit card (those inquiries) but a crappy 10,000 dollar insurance policy? People can buy car insurance/homeowners insurance with crappy credit! 

Ugh. So annoyed this morning.

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@QuakerOatmeal

If you want to get a look at some of your credit cased insurance scores, TU CBIS are available free through Credit Karma. They don't correlate directly to LN CBIS but, they are a better representation than standard credit scores .Refer  to below link for instructions.

https://ficoforums.myfico.com/t5/General-Credit-Topics/Free-Transunion-Credit-Based-Insurance-Scores...

If you check your CBIS, please report your findings.

[Anonymous]

And if you do get your CBIS, bear in mind something that TT said early, which is that a 720 CBIS is considered a bad score, not a good one.  The TU and LN CBIS scores use a different ranking than the typical FICO score.

It's a little like the difference between Celsius and Fahrenheit.  In one scale 30 degrees is below freezing.  In the other it is so hot you couldn't sleep.