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Originally Posted by InDebtInDC
Therefore, in view of the evidence submitted above, I stand by my original statement. I further respectfully request you to cite your sources to back up your position.
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Quoting Fair Isaac to prove that FICOs are not misused is like quoting Philip Morris to prove that cigarettes aren't addictive.
Ok you want sources. Well, first of all I have AAA auto insurance and it says clear as day on my policy that my premiums have been lowered by X amount because of my high credit score. I would also encourage you to check your own policy and/or call your insurance company to ask if they use your credit score in determining your premium. But I assume that's not good enough so here are 3rd party sources...
BankRate
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A consumer with bad credit is going to pay 20 to 50 percent more in auto insurance premiums than a person who has good credit. On the other hand, having sparkling credit could land you lower rates, so you should shop around if you've got a glowing credit report.
To factor in credit ratings, insurance companies use either the Fair, Isaacs & Co. (FICO) three-digit credit score alone; order an "insurance score" from FICO; or create their own, proprietary score using FICO credit scores or FICO insurance scores and adding in their own underwriting criteria.
The companies generally do not look at your actual credit report. Instead, it receives your credit score or your insurance score from one or more of the three major national credit repositories, Equifax, Experian and TransUnion.
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Car Insurance Premium Questions - Credit Insurance Score Affects Car Insurance Price | Nationwide.com
Insurance Credit Score - How it will Change Your Insurance Quote and Insurance Policy
Our Company - FAQs - Credit-based Insurance Scoring
Need Credit or Insurance? Your Credit Score Helps Determine What You’ll Pay
» Five Reasons you Should Care About your Credit (FICO) Score*@*fivecentnickel.com
Improve Your Credit Score - Lexington Law Credit Report Repair
Please let me know if you need additional sources.
Regarding a few other points you made.
- The OP pointed out herself that she was forced to pay a high mortgage rate because of her poor credit score. Mortgage rate information is publicly and freely available. It currently stands on average around 6.25%. If OP is paying 9.25% she's paying approximately 3 percentage points higher than she would if she was a lower risk borrower. Is it exactly 3 percentage points? Maybe not, but if she improves her score she will most certainly qualify for a lower mortgage rate.
- You proved my point when trying to discredit me on my assertion that one must attain credit and make timely payments to improve one's credit score. All 5 factors listed at your linked site (payment history, amounts owed, length of credit history, new credit, types of credit used) require you to have loans or credit cards. No loans or credit cards, no improving your FICO, period.