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:
“My credit now stands on such slippery ground
That one of two bad ways you must conceit me,
Either a coward or a flatterer.”
—William Shakespeare (15641616)
“So, Willy, let you and me be wipers
Of scores out with all menespecially pipers;
And, whether they pipe us free, from rats or from mice,
If weve promised them aught, let us keep our promise.”
—Robert Browning (18121889)