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Store and Fuel Card effect on insurance rates

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polian
New Contributor

Store and Fuel Card effect on insurance rates

Hello folks, I'm mostly through my rebuild but I picked up a few store cards and a couple of fuel cards as a boost. It was effective for FICO. I thought I had learnt most everything (mostly from these forums!) I needed to be successful moving forward. Incorrect.

 

I'm also buying a home, and while quoting homeowners insurance I learned something new. The very presence of store cards and "oil company" cards reduces your insurance score. After searching the forums for more detail on my personal discovery it seems that I was the only one that didn't realize this, heh.

 

Long story short, I had my autos through USAA. It's around renewal time and the rates jumped significantly. Their homeowners was completely out in left field. I wanted to dump USAA anyway due to a string of shockingly bad customer service experiences (another time) on both banking and insurance product lines.

 

At any rate, my new insurance company sent me an AA letter. It cited the LexisNexis Attract product as the source for their data. I didn't receive the best rates because.. etc etc. LexisNexis reason codes

The first reason was number of open store accounts (I had 5 - closed 3 since. Military Star and SyncB/CareCredit remain)

The second reason was number of open oil company accounts (I have 2. Citi/Shell and Citi/Sunoco)

 

My question is this: can anyone quantify how much of an actual impact on rates this is?

Thanks.

Message 1 of 8
7 REPLIES 7
M_Smart007
Legendary Contributor

Re: Store and Fuel Card effect on insurance rates

Possibly @K-in-Boston or @Anonymous could give you the answer your looking for?

Message 2 of 8
Anonymous
Not applicable

Re: Store and Fuel Card effect on insurance rates

Well I can tell you this, I think they are listed in the order of precedence, so that means the very first one is causing the greatest magnitude of increase, and the second one would cause the second greatest magnitude of increase.

Recent inquiries, any retail card causes the score to go down and your premiums to go up; however I will give you some good news. The higher the ratio of credit union credit cards you have, the better your score will be, up to 33% of your cards.

Not much you can do about the store and fuel cards or retail cards, as even if you close them they’re going to be there for 10 years, most likely.

I’m sorry this happened to you.
Message 3 of 8
Anonymous
Not applicable

Re: Store and Fuel Card effect on insurance rates

Also seems like the older they are and, IIRC the higher the limit they are, may be worse too, but don’t quote me on that second part though, as I cannot conclusively remember.

But if you got plenty of time and curiosity LEXIS-NEXIS attract codes are published for your viewing pleasure, if you’d like to review about 100 pages of them that are available, IIRC. I may be exaggerating a little.

Message 4 of 8
ccquest
Established Contributor

Re: Store and Fuel Card effect on insurance rates


@Anonymous wrote:
The higher the ratio of credit union credit cards you have, the better your score will be, up to 33% of your cards.

So technically I'd get the best boost from adding one more credit union card now? Currently at 1 of 5, adding one would put it at 2/6 which is right there. Not going to do it anytime soon, just wondering.

 

Thanks

as of 1/1/23
Current Cards:
Message 5 of 8
Anonymous
Not applicable

Re: Store and Fuel Card effect on insurance rates

@ccquestYes that should increase your credit based insurance score through LEXIS-NEXIS, assuming all other things are held constant. 

But keep in mind, there are so many different characteristics that they consider to come up with the CBIS score, like I said, you can view the attract codes, if you have the time and interest.

Message 6 of 8
polian
New Contributor

Re: Store and Fuel Card effect on insurance rates

Thanks guys... just when you think you're doing everything [mostly] right there's another factor to consider.

Message 7 of 8
Anonymous
Not applicable

Re: Store and Fuel Card effect on insurance rates

@polian Read the Scoring Primer, there’s probably a lot more you’re unaware of. It is linked at the top of my signature.

Message 8 of 8
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