Consumers with poor credit
histories are more likely to file insurance claims, a study
… Credit history was
found to be a significant factor in homeowners’ claims, although regulators
couldn’t determine its importance in relation to other factors, such as a home’s
age. Overall, the study didn’t find a correlation between credit scores and the
size or severity of a claim, only the likelihood of filing one. … California
and Hawaii ban the practice, and Maryland has barred using credit scores in
homeowners’ insurance, while allowing it for auto-insurance policies.
It makes sense, but it’s still
wrong. Right now, credit scores are the single most important factor for almost
every facet of our financial world. Be careful.