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:
“To act the part of a true friend requires more conscientious feeling than to fill with credit and complacency any other station or capacity in social life.”
—Sarah Ellis (18121872)
“Why have such scores of lovely, gifted girls
Married impossible men?
Simple self-sacrifice may be ruled out,
And missionary endeavour, nine times out of ten.”
—Robert Graves (18951985)