[jmjj215]

Terry,
I think we might be on the verge of agreement...

Which is worse: no credit report (you NEVER borrowed money)
a credit report with open accounts, but zero balances
a credit report where all the accounts are now closed.

If the best credit score would be one with open accounts but zero balances, with the accounts lying dormant, then I guess it wouldn't hurt just to leave them open forever, cut up your credit cards and pay cash for stuff. Am I right in my thinking?

The insurance thing is interesting and new to me. Do you think they also care about your credit score because people borrow money from the insurance company when their premium comes due? You said it had nothing to do with debt, but it might have to do with debt after all. Most insurees pay their premium on a payment plan - and looking at their credit history might shed some light on whether they would pay it after all. I don't know why a good credit score would lower the risk of an insuree (thus a lower premium) unless good credit equates to good driving. And the math pros at the insurance companies might have figured just that out.

would someone with no credit (never borrow money) be a lousy driver? You couldn't draw that conclusion really because you wouldn't know how that person handled debt, never having had any.

Keep the replies coming - you've already got my gears turning quite a bit these last few hours.