Debt... I just dont understand.

[brokeno]

Another couple living pay check to pay check,,,,, most people like this are a month away from bankruptcy if either one loses their job. It's nice to buy everything you want but nicer not to and retire early.

[JHT]

They must work for the government.

[Christianhuff]

I'm in a million dollars worth of debt, but it's house and land.

[tigerscowboy]

I don't have bad credit but I don't understand why credit score should have anything to do with an insurance rate.

Low credit scores share a correlation with those that are a higher risk to insure.

Examples: Short/late/no payments, excessive claims, scams, ect.

[kumathebear]

Are you freakin' kidding me?? What about those that don't live beyond their means? Maybe they are going through some rough times. Family and food come first you know. You have obviously never had ANY strife in your life. I learned a long time ago, there are plenty of people with good credit scores who absolutely suck as human beings. I also know people with horrible credit that would lay their life on the line for a perfect stranger. I know who I would choose as my friend. So, come down from your lofty perch and dip a toe in the real World. Not everything goes according to plan....like cancer. Get over yourself.

Good point! After my original comment, well, I had to revisit this OP to see the responses. Let me tell you....lose your job, go thru a divorce and see what happens to you?!

Then...just pick your BUTT up, fight on, get rid of the dam credit cards and live! I stand by my original comment...the Credit Reporting agencies and Insurance companies THRIVE on those in a bind and DON'T tell me those trying to recover are a higher risk!! If your debt to income ratio is way off then repair it...no matter how long it takes..it can be done! Sure, there are some, but I would bet against ALL the BS data the majority are applying their life experiences in the world of finance to go BEYOND surviving month to month.

I still say it's a SCAM for the ALMIGHTY $$....shame, shame, shame on those who profit from others pain...NUFF Said!

[tigerscowboy]

Credit score and insurance rates are a total SCAM.....

I'm curious, why is the credit rating system a "SCAM"? I'm not challenging you, but I'm interested in hearing the perspective and supporting information.

[Greyman]

I'm curious, why is the credit rating system a "SCAM"? I'm not challenging you, but I'm interested in hearing the perspective and supporting information.

Simple: YOU ARE REQUIRED to have insurance. The rest should be self explanatory.

[Darton]

I worked in Auto finance for about 10 years. We financed people with bad credit. I saw lots of deals come through where people made over 200k and had scores in the low 400's. Then you have the 40,000 a year millionaires. Tons of credit cards maxed out living in a new double wide driving a big dullay pulling a 100,000 dollar aluminum 4 horse slant with living quarters and the wife driving a big Subrbani and their son role they can't pay attention.

My dad was a welder and farmer he always told me. "Never get to be friends with the banker"

True for some, but I have wonderful relationships with my bankers I am worth way more than I make! Rule is if you borrow when you need it? You sir have a problem! Leveraging is the key! It all comes down to responsibility! The world doesn't care about your personal strife! Just your results plain and simple

[Livin'2hunt]

Good point! After my original comment, well, I had to revisit this OP to see the responses. Let me tell you....lose your job, go thru a divorce and see what happens to you?!

Then...just pick your BUTT up, fight on, get rid of the dam credit cards and live! I stand by my original comment...the Credit Reporting agencies and Insurance companies THRIVE on those in a bind and DON'T tell me those trying to recover are a higher risk!! If your debt to income ratio is way off then repair it...no matter how long it takes..it can be done! Sure, there are some, but I would bet against ALL the BS data the majority are applying their life experiences in the world of finance to go BEYOND surviving month to month.

I still say it's a SCAM for the ALMIGHTY $$....shame, shame, shame on those who profit from others pain...NUFF Said!

I'm with you 100%, Brother. It is nothing more than legalized loan sharking. This practice is little better than pay day lending. On a product that most people must possess to get to work, it is a despicable scam designed to prey on people going through the hardest times of their lives. Insurance companies survived decades without credit scores....

[Livin'2hunt]

True for some, but I have wonderful relationships with my bankers I am worth way more than I make! Rule is if you borrow when you need it? You sir have a problem! Leveraging is the key! It all comes down to responsibility! The world doesn't care about your personal strife! Just your results plain and simple

How the hell do you sleep at night?

[12RingKing]

Google is your friend. There's been a lot written about it and the practice has been around for 15+ years. The short version is this: Studies have shown a correlation between how much you may cost an insurance company in claims and your credit score. Those with higher credit scores tend to cost insurers less than those with lower credit scores. You may not agree, but that's what the data shows.

Bonjour! I'm a French model

[Darton]

How the hell do you sleep at night?

Quite well, thank you! I didn't mean to get you riled up, but what specifically did I say to get you worked up? Was it my stance on personal accountability? You spoke of people with good credit as scum and those without the good credit being your pick as a friend? That is your choice, but when it comes to these types of decisions it's about results and personal accountability. The process is not to elect a church choir but to find people who are responsible with their personal affairs regardless of circumstances! Disagree?

[txwhitetail]

Credit score and insurance rates are a total SCAM.....

Not really the averages make sense.

[jerp]

If you get in a debt bind because you lost your job or got a divorce, it is still your fault - you had too much debt and not enough savings. Just because a bank will you lend X amount, it doesn't mean it's a good idea or you can really afford it. It is still on you to be responsible with debt. Many people are 1-2 missed paychecks away from financial disaster. What makes anyone think there will never be a bump in the road - that they are guaranteed a check every two weeks no matter what? You have to prepare for that. Remember that all those loan dollars are someone elses money. They are taking a risk lending it to you but you signed on to pay it back - not "I'll pay it back unless my wife leaves or I lose my job"
They will lend you more than you can afford!! You default and they come get your stuff! You have to be smart and know that going in

[JakeGraves]

How the hell do you sleep at night?

Why are you so bitter? If you are in a bind and need help, PM me.