Sentences with phrase «use of credit scores»

Perhaps the most troublesome recent use of the credit score is by insurance companies to establish rates.

The only area where the controversial use of credit scores has received any serious backlash is for the underwriting of insurance premiums.

Let's talk about the potential uses of a credit score, acquiring a loan.

The reason that insurance companies make use of credit scores is to try to determine your ability to pay for your insurance premiums and other costs that you may incur.

Travelers has discontinued use of credit scores in California at the request of the Insurance Department.

In 2011, Newfoundland and Labrador became the first provinces to prohibit use of credit scores for both automobile and personal property insurance.

Inflated insurance premiums are just the tip of the iceberg when it comes to the ever - expanding use of credit scores for reasons for which they were never designed.

Unless you personally happen to fall into a penalized group, it's likely your premium will be lower if you authorize use of your credit score than if you don't.

«Americans reject auto insurer use of credit scores because they don't think someone who's had difficulty paying debts should automatically be charged higher auto insurance premiums,» said CFA Executive Director Stephen Brobeck.

Borrowing Money — The most common use of your credit score is still for borrowing money.

Use of credit score facilitates the availability of credit for borrowers.

Credit - Based Insurance Scores You may not realize it, but your credit - based insurance score could be causing you to pay more for your insurance than necessary, thanks to most carriers» use of credit scores in setting premiums.

Still, according to Loretta Mester, director of research at the Federal Reserve Bank of Philadelphia, the use of credit scores in lending decisions is rising — and is likely to continue to rise — with industry consolidation, as large banks that need automated processes to handle their heavy loan volumes continue to acquire small banks.

Reforms will include putting an end to the use of credit scores in insurance pricing.

Critics charge that this use of a credit score is completely arbitrary and it is an unfair business practice.

Smaller concessions in Alberta and Ontario disallow the use of credit scores for mandatory automobile insurance coverage, but there are no restrictions regarding personal property.

On the surface, the use of credit scoring appears to benefit homeowners who work, pay their bills on time and are responsible members of society.

For instance, a poll conducted in December 2010 for the Insurance Brokers Association of Ontario on the use of credit scores by property insurers found 75 % of consumers didn't even know the practice existed.

On the surface, the use of credit scores appears to benefit would - be tenants — people who work, pay their bills on time and are responsible members of society.

Because the use of the credit score is streamlined, efficient, and helps lenders control credit losses, costs decrease for the borrower.

At least one of these studies found that the use of credit scores for pricing had a disproportionate impact on certain minorities (primarily Latinos) and low - income individuals.

Renters insurance follows homeowners with the use of credit scores.

The major difference between federal student loans and private student loans is the cost and the use of credit scores in determining eligibility.

In the aftermath of the Great Recession, which saw millions of Americans out of work for prolonged periods, the use of credit scores for purposes other than determining creditworthiness become controversial.

Before the use of credit scores, lenders used data from credit reports, individual account information, consumer financials, and their own underwriter's judgement when vetting loan applicants.

With VA loans the government does not actually require the use of credit scores.

So far, three states have banned the use of credit scores for determining insurance rates.

A company called Fair Isaac Corporation pioneered the use of credit scores in 1956, but they didn't become widely used by creditors until the 1980's.

Then, in 1995, Fannie Mae and Freddie Mac recommended the use of credit scores in mortgage lending.

(Personally, we have real problems with the use of credit scores in the granting of insurance and other services.

Although California law severely limits the use of credit scores in insurance, many companies use them to deny homeowners policies, and some use them to determine payment plans on auto insurance.

failed to demonstrate that the collection and use of credit scores are necessary and effective in preventing and detecting fraud;

In Massachusetts, although not banned, regulators will not approve rate filings for auto or homeowners insurance that include the use of credit scoring.

When analyzed by type of insurance policy, the data showed that the use of credit scoring impacted more homeowners policies positively (50.2 percent) than auto insurance policies (46 percent).

Because credit scores are based only on objective financial data and are not based on or affected by your race, age, gender, where you live, where you work, what your job is, how much you make, or whether you are disabled; the use of credit scores is not unfairly discriminatory.

They include mandating insurers to refund consumers for overcharges and prohibiting the use of credit scores to set premiums, a practice that he said increases costs for Detroit residents.

There is a proposed bill by Congress to ban the use of credit scores nationwide.

California, Hawaii, and Massachusetts have banned the use of credit scores to determine car insurance rates.

Regulations governing the use of credit scores require insurance companies to get a customer's express consent before collecting their credit information.

Attorney Steven Gursten of Michigan Auto Law slams the use of credit scores in setting auto insurance rates as «the new redlining,» referring to the practice of charging super-high rates in low - income neighborhoods in hopes of discouraging customers from signing up.

In the state of Michigan, for example, even the decision of the state's highest court has not prevented consumer advocates from continuing their lobbying efforts on behalf of auto insurance reforms targeted at the use of credit scores in policy underwriting.

From arguments over no fault law and its particulars to debate over the use of credit scoring and other factors in the setting of auto insurance rates, there is much yet to be resolved.

In August of 2010, members of the Property and Casualty Insurance Committee at the NAIC's annual summer meeting sat down and reviewed actions they might take regarding the use of credit scoring in auto insurance underwriting practices.

At the summer meeting, critics on both sides debated back and forth about the merits of an NAIC model law to regulate the use of credit scoring as an underwriting tool in the auto industry.

In fact, he noted a state Supreme Court decision that limits the right of the state insurance commissioner to scale back the use of credit scoring in Michigan [1].

To find out whether your state allows the use of credit scores, call your state's Department of Insurance and ask them.