I really think our system of paying with the good old American dollar stinks...
If you work hard every day and pay cash for everything so you don't get in debt, you are charged more because of it..
Take this for instance, you are charged more when you get car insurance because they cannot find any credit on your record. Therefore, you are charged more for the premiums.
If you have credit card debt and balances on several things, you are not charged as much. I don't think that's fair, and I think the system stinks..

Anyone have an equal opinion here?

I don't know the system....I'd rather ask you something.

Don't you pay a higher or lower car insurance according to the number (or not) of accidents? it seems very weird you are charged based on your credit report rather than on the likehood of occurrance of the event (the accident) in your particular case.

If you have enough money to pay your car and your house in cash, I don't think you'd mind to pay more or less car insurance. I thought the credit report was not only about your credit card but also and mainly about the big purchases and how well you pay.

Good questions, Teddy.. But I don't know if I can fully answer them.

Have no home(s) payments, no automobile payments, However, did have those some years past.. The wife has a department store credit card she uses, and like's to very often.. I have a American Express card that I use from time to time to make motel reversations when we travel..
But the insurance company claims they can determine a person's responsibility by his credit debt. They want to see character from an indivdual.. Well I know some people that have a lot of debt, and have no character.. And I guess that makes sence to some, but to charge more for the premium, makes no sence.

But then, we have so many things going wrong in this country, they also don't make sence.. I suppose it's just the trends of everyday business...

If they want to check whether you are a responsible person or not, they could just check whether you have filed for bankrupcy (I hope it's the right spelling) before or not, or some references. You could suggest the company to check on that and/or check your old mortgage payments.

Also you can go to another insurance company...because that one sounds weird, just weird...

Originally posted by Skeeter
If you have credit card debt and balances on several things, you are not charged as much. I don't think that's fair, and I think the system stinks..

It does stink if you're a fine upstanding citizen, but I can't think of another way for a lender to see how good you are at consistently making your payments and spending your money wisely. Certainly you don't expect them to just take your word for it?

Originally posted by Teddy
Also you can go to another insurance company...because that one sounds weird, just weird...

They've actually got numbers showing that people with bad credit get in more accidents - I've seen it in the paper. I have no idea what the connection is, but if they can get it past the state insurance regulators it must have some validity.

Doesn't it kinda depend on what the good limit/bad limit line is? For all we know, a number could have been made up that's below the average and everybody above it would have bad credit.