Personal Personal behavior affects credit score--Businessweek (pay, rates, vehicle, charge)
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Well, this is interesting. I worked in risk management for a bank so I was able to see credit bureaus and what people were getting dinged for, but this was just what was in the bureau. These models developed are quite comprehensive with (in my case) PhDs developing them or at a minimum MBAs, so it's not like a bunch of dummies are coming up with this stuff. Obviously they've found a way to weigh these factors into their models. I'm not saying invasion of privacy is right, as it's not, but I'd be curious as to the methodology behind their models.
I'm curious too. It seems if you have a stellar driving record, but missed a utility payment, your car insurance is higher. They pick and choose which behaviors they monitor to benefit them best.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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They are all based on statistics that show that, if you are sloppy with credit, you are usually more prone to wrecks and fires. And they are even going to be more heavily looked at in the future by data banks. For example, it is well known that smokers start fires and have health troubles. No longer will they just take your word you don't smoke. They can now look at your credit card records from retailers and see everything you bought and if they see repeat cigarette buying on it, your rates will go way up! It is coming soon! Someday it may even expnad to the kinds of foods you buy and if you have alot of meal charges at fatty fast food joints too.
That's crazy! "Massage"? How will they distinguish between medically sound massage like myotherapy and the kind I assume they are thinking of? (& BTW, if it is a legal and regulated business, like it is in some places, who is to assume it is not a healthy practice? Repression is probably more closely tied to road rage!!!)
A good credit risk, in my opinion, would be someone who uses something like reiki to manage stress instead of getting addicted to prescriptions, but according to that table, he/she would be considered unworthy...
And what about medical stuff? Are people going to have to consider avoiding necessary medical treatment if they have to fear losing their family's home because of higher mortgage payments due to some negative points given to particular prescriptions?
They are already starting the food thing. I won't shop at Randall's because in some of their publicity they are pushing themselves ahead of the other stores in that regard.
Never forget: one week, margarine is good and butter is bad, the next week butter is good and margarine is bad. One week you are supposed to be a tee-totaler and the next week you are supposed to have one glass of red wine a day. And, frankly, a box of organic-natural donuts are still donuts, but of course the yuppie-brains behind this kind of credit-fascism won't penalize shoppers at "Whole Foods Organic Overprice" as much as they will penalize shoppers at "Wal-Mart"....
And what about if you buy lunch for other people besides yourself? I can see people refusing to trade off on lunch deals for fear of negative points if it is going to look like they had three burgers and not the salad! This is yet another destruction of our social fabric. >
They are all based on statistics that show that, if you are sloppy with credit, you are usually more prone to wrecks and fires. And they are even going to be more heavily looked at in the future by data banks. For example, it is well known that smokers start fires and have health troubles. No longer will they just take your word you don't smoke. They can now look at your credit card records from retailers and see everything you bought and if they see repeat cigarette buying on it, your rates will go way up! It is coming soon! Someday it may even expnad to the kinds of foods you buy and if you have alot of meal charges at fatty fast food joints too.
Not that I smoke, but how can they check if you buy sigarettes or unhealthy foods? I do pay almost everything by using my credit card and we eat very healthy and no one is over weight in my family but we also like some "unhealthy food"....the part I don't get is that IMO the credit card company only can see where you buy and how much the amount is...are you saying they are checking complete receipts.....?
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by bentlebee
Not that I smoke, but how can they check if you buy sigarettes or unhealthy foods? I do pay almost everything by using my credit card and we eat very healthy and no one is over weight in my family but we also like some "unhealthy food"....the part I don't get is that IMO the credit card company only can see where you buy and how much the amount is...are you saying they are checking complete receipts.....?
Everything you charge on a credit card is encoded into data that is sent to data banks such as Choicepoint. For example, if you go into Wal*Mart and buy 2 heads of lettuce, a pack of cigarettes and a new shirt, the UPC codes are scanned and, if you use a credit card, they can married to the credit card you use and sent to Choicepoint. Choicepoint will then marry the credit card number to you via your credit file (they are owned by TransUnion) so they know what you bought and when you bought it.
So along comes an insurance company- let's say Progressive. Progressive them pulls your driving record (which all counties feed into ChoicePoint), your vehicle history as well as an "insurance score" which is made up of all those little things Choicepoint knows about you. Using statistic models, the insurance company has determined that smokers are XX% more likely to start their homes or vehicles on fire and XX more likely to be involved in a vehicle accident. But now they need not ask you if you smoke. They already know you do- or assume you do- because Wal*Mart shows you bought a pack of Kool cigarettes from them 5 times last month, Quick Trip shows you used your Visa card to buy a pack from them 10 times last month, 7/11 shows you bought Kools from them 8 times last month. Not only do they know you smoke but they can even get a rough idea how much you smoke. So they jack up your rates to match what they think you might cost them in risk.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by sirron
One more reason to stick with cold, hard cash.
Honestly speaking- if you are buying anything you don't want the whole friggin world to know you bought, cash is best. Also you can use a "throw away" pre paid credit card that is not tracable to you.
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