Low Credit Score Is Costing You Big Money
Credit abuse: unfair treatment
Good credit is something that everyone needs. Unfortunately, it is not something that everyone has. For one reason or the other, there are millions of people who have fallen into the bad credit trap.
Sometimes, even after years of busting your hump to pay off old bills that have left their nasty marks across your credit reports, there are still ugly scars that tend to show up.
I have had my share of credit issues, some at no fault other than my own carelessness. But, some, I have fallen into due to the economy. Needless to say, these are my own burdens to bear.
I have a huge issue though with just how much my credit score affects some of the important aspects of my life. For instance, yes, my credit score may not be the best, but I am working diligently on that. That being stated, I find it very upsetting that my low credit score, for whatever the cause, affects just how much I am charged for my car insurance.
Please explain why it is okay for car insurance companies to charge me a higher premium, just because I have a lower credit score? My credit score has nothing to do with my driving record—which is stellar, I may add.
I do not get charged more for electric, cable, water, and so forth, because I am paying off some old debts. So, why is it okay for car insurance to be based on credit score?
Shouldn't the car insurance bill be based solely on your driving record? Shouldn't it follow the same suit as all other bills, where if you do not pay, then the servicer cancels the service?
In today's hard economic times, people are having to work even harder to make ends meet. The cost of living continues to rise, while paychecks continue to stay the same.
I know that even the tiniest of details, when it comes to finances, can make a huge difference for many people. For instance, when searching for liability insurance for an older car I have, because my credit score is deemed unsatisfactory to the company, the quote I was given nearly doubled.
I was quite upset, and asked the sales rep very bluntly, "Why?" I was then informed that I was considered a higher risk because of the credit score, and therefore charged a higher amount.
I then stated, "You mean to tell me, because I have debt that caused my credit score to lower, that I have to pay MORE than say someone who has no debt? Even if my driving record is 100 times better than theirs?"
Case in point, according to insurance rep... yes. I continued to express my unhappiness and feelings that this system is unfair and unjust.
It did not seem to matter. To me, this is financial discrimination. I can be the best driver around, pay my car insurance bills on time, be a law-abiding citizen, and I am judged by my finances.
Unfair! It is a law that you must have car insurance to drive. However, criminals, murders, uninsured drivers, and drivers who have caused or been involved in many accidents can get a lower premium than someone who has a checkered credit score, despite the reason behind it.
At this rate, will hardworking citizens be expected to pay higher electric, water, and heating bills because we experienced a major medical setback that was sent to collections, because we were unable to pay the high cost of treatment within what they considered a reasonable amount of time?
Come on now, people. We need to feed our families, and those of us who are trying to make a living, pay off bills while keeping food on the table, and a roof over our heads should be treated the same as those who may not be struggling quite as much.
Not asking for a hand-out, or for anyone to pay our bills, but how about being treated fairly? I can't be the only one who feels this way.