Was scrolling through my news feed earlier and stumbled on this article about how insurance companies are using people's credit scores to set their rates. Like, apparently if your credit isn't so hot, you might end up paying more for car or home insurance. I mean, I get that they wanna assess risk and all, but it feels kinda weird, you know? Like, what does my credit card bill have to do with how safely I drive or how well I take care of my house?
The article mentioned some states are even considering banning this practice because it might unfairly target people who are already struggling financially. Honestly, I never even knew this was a thing until today, and now I'm wondering if that's why my cousin's insurance premiums are so high—he's always complaining about it, lol.
Anyway, curious if anyone else saw this or has thoughts about it. Seems a bit sketchy to me, but maybe there's something I'm missing here...
Yeah, I just bought my first insurance policy recently and came across this exact thing. It felt pretty strange to me too... like, shouldn't my driving record or home inspection matter way more than whether I missed a credit card payment a year ago? From what I read, insurance companies argue there's some correlation between credit scores and claims, but it still seems kinda unfair to penalize people already dealing with financial stress. Maybe I'm oversimplifying it though—insurance is weirdly complicated.
