     P Burton (Pburton) | Wednesday, August 30, 2000 - 01:21 pm 
I am shopping around for new car insurance.
However, I may be applying for a mortgage
in a few months. How is it legal for insurance
companies to now base the amount they charge
for coverage based on your credit report?
Especially if you have no experience with them?
I have queried three companies, therefore I
now have three inquiries on my credit reports
when I am not doing business with these firms -
simply shopping around for the best rate. |
| Erik (Erik) | Wednesday, August 30, 2000 - 03:01 pm
The credit scoring statistical models penalize comparison-shopping. It isn't fair but that is how it is.
Supposedly if you do all your comparison-shopping within a 14-day window it won't count as more than one inquiry. |
| Michael Bardelli (Bull22) | Wednesday, August 30, 2000 - 04:04 pm
I have never understood that. We are supposed to be in a country that is the land of the FREE, yet I have to shop for a car/car insurance within a 14 day window or else I run the risk of not being able to get the loan that I need to make that purchase or the coverage I need to drive my vehcile. I see what is going on here, make it so that the average joe can't get transportation so that he can't vote and speak out against big government. This sounds like another government that we all have heard of, especially if you were alive from 1937-1945 and lived in Germany, hint hint hint. Small government is the way to go!
Mike |
| Amy Duncan (Amydd) | Wednesday, August 30, 2000 - 05:59 pm
Does the 14 day window count for insurance inquiries as well? I knew it did for auto & home loans. Also, after the 14 days (when they only count as one) do they go back to counting individually. In other words you go to 5 different car dealership in 14 days. You have 5 inquiries from them, then only count as one. After the 14 days, do they count as 5 again? |
| Shylock (Shylock) | Thursday, August 31, 2000 - 04:25 am
The method for eliminating duplicate inquiries is more elaborate than what people above have said.
First of all, if you go apply for a vehicle loan now and you have applied for any other vehicle loan in the past 30 days then those previous vehicle loan inquiries are not counted.
Secondly if you apply for 7 vehicle loans in a 14-day period and you don't get any of them and you wait two months and try again those 7 inquiries will be counted as one single inquiry.
I don't know and I'm not sure anyone does know if insurance inquiries count against your score at all and I'm not sure if they're de-duped either. |
| Senator (Senator) | Saturday, September 02, 2000 - 03:33 am
don't believe that these windows exist or that the computers can pick up the coding. I speak from experience. The five inquiries that occurred with my car purchase were treated separately and caused reductions of approximately, on average, of sixty points. I pointed out this information to the cra and they told me that if not coded right, they are treated as multiple, unlinked inquiries. I can't afford anymore or all my hard work will go up in smoke and I will be back below 600. |
