Credit Scores Revisited

By Author: Norris Rios
Total Articles: 572
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For most of our lives, we take what life hands out to us, making ourselves feel better with a little retail therapy. So what if our boss lords it over us and makes our lives miserable. That's alright if we earn enough to put food on the table and clothes on our back. Except, every now and then, we hit something that rankles. Like when our insurer decides to increase the premium rates on our vehicle insurance just because our credit score dropped a couple of notches. It's not as if we suddenly turned into the Terminator, smashing up everything in our paths. We're the same careful driver as yesterday. Still no accidents. Still no tickets. Yet just because we started paying down our credit card debts, we suddenly have to pay more for our insurance. . . That can't be right.

Sadly, that's the way it works around most of the US. And not just for insurance. There's many an employer who prefers to hire someone with a good score. There's many a landlord who only rents out to those who can apparently afford to run five or six cards with big debts. Yes, that's right. People earn the highest scores when they manage their debts well. ...
... Your score drops if you pay down your debts and cancel the cards with the highest interest rates. Except, of course, as this recession rumbles on and unemployment remains a threat, there are many always on the verge of financial disaster and the scores reflect that as well. Ask an honest insurer and you get the answer. Desperate people are so short of money, they fail to maintain the vehicles. The tires get worn down, the brake pads wear thin. They are accidents waiting to happen. Worse, they are tempted into fraud and crime. They fake the theft of their vehicles to claim the fair market value. They are a liability. So we all get tarred with the same brush and, even though our driving stays safe, we are asked to pay more.

So now is the time to check out your credit history. The Fair Credit Reporting Act (FCRA) is of the few statutes that works, forcing Equifax, Experian and TransUnion to give you a free copy of your credit report every 12 months. When you get the reports, check for every mistake. You have a right to have your records corrected. Once the basic records are accurate, your score may improve. Then you wish you lived in Oregon.

There's a new law that forces insurers to lower their rates if the credit scores for Oregonians improve. In the first year of operation, about 8,000 people asked for their premiums to be rerated and earned an average saving of $100 on both homeowners or car insurance quotes. So if you live in this wonderful state, use the FCRA and then ask for a rerating. This costs you absolutely nothing in fees and could save you $100 plus on each policy you hold. So instead of getting your car insurance quotes and then renewing the current policy on auto pilot, be proactive and protect your interests.