Why is a credit score a factor in things such as price for auto insurance or emp

Jump to Last Post 1-5 of 5 discussions (5 posts)
  1. JaneKnowsbest profile image79
    JaneKnowsbestposted 6 years ago

    Why is a credit score a factor in things such as price for auto insurance or employment?

  2. JanetF profile image59
    JanetFposted 6 years ago

    It all comes down to how reliable a person you are when it comes to your personal finances.

    Because, like it or not, how we handle our money affects so many other aspects of our lives.  If we are disciplined enough to pay bills on time then that indicates that we will be attentive to the details involved with a demanding job.  It also shows that we are goal oriented, another plus at work.

    As for auto insurance, insurance companies gauge how risky a person's driving habits may be by how reliably they tend to their finances.  Usually, someone who is conservative enough to pay his mortgage on time is probably not going to engage in high-risk maneuvers on the road.

  3. Cre8tor profile image98
    Cre8torposted 6 years ago

    I agree with JanetF but hate that this becomes a factor without explanation. Many people handled their money just fine until something unexpected happens and causes their score to plummet. Then it becomes a snowball effect. I know it's not really an answer but think I feel where you're coming from.

  4. duffsmom profile image61
    duffsmomposted 6 years ago

    A credit score indicates to a lender or other business entity how you handle your business--and life really.  Any debt, loan, credit card, etc. is a promise - you basically give your word that you will repay that money.  When it is not done according to the terms of the agreement - the score does down and new lenders, including insurance companies tend to view that person as a risk.

    Prospective employers are looking for someone who is honest and someone who keeps their word or promise.  A lower credit score can indicate to them that this person has not met their obligations (kept their word) and might be a bad risk for employment. 

    Even though we pay huge premiums, insurance companies still take a risk when they insure us so they have a lot to lose if they insure a person who does not honor their obligations.  Unfortunately, they do not care about our unexpected emergencies - they have to consider their financial bottom line.

  5. profile image49
    jonardgolleposted 5 years ago

    A number of things can be said by looking at your finances. It will determine on how well you will be able to handle this new financial obligation with the insurance company. I also agree with the fact that there are better things that can be used to gauge a personality. Unfortunately a number of companies have went ahead and used this method for a long time now and we will not be able to do much in changing that.

 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)