Non-traditional Uses of Credit Scores
Credit scores are often used in determining prices for auto and homeowner's insurance. Starting in the 1990s, the national credit reporting agencies that generate credit scores have also been generating more specialized insurance scores, which insurance companies then use to rate the insurance risk of potential customers. Studies indicate that the majority of insureds pay less in insurance through the use of scores. These studies point out that people with higher scores have fewer claims.
In 2009, TransUnion representatives testified before the Connecticut legislature about their practice of marketing credit score reports to employers for use in the hiring process. Legislators in at least twelve states introduced bills, and three states have passed laws to limit the use of credit check during the hiring process.
Read more about this topic: Credit Score (United States)
Famous quotes containing the words credit and/or scores:
“Most of the money given by rich people in “charity” is made up of conscience money, “ransom,” political bribery, and bids for titles.... One buys moral credit by signing a cheque, which is easier than turning a prayer wheel.”
—George Bernard Shaw (1856–1950)
“So, Willy, let you and me be wipers
Of scores out with all men—especially pipers;
And, whether they pipe us free, from rats or from mice,
If we’ve promised them aught, let us keep our promise.”
—Robert Browning (1812–1889)