Wednesday, February 4, 2009

Bad credit? Insurers will make you pay

Copied and posted by Pin-Yu Liao

By now you know that you need to keep tabs on your credit history to make a good impression on lenders, landlords and employers. But did you know that your home and auto insurers are also looking?
In most states they're allowed to use your credit information to formulate premiums - and in June the U.S. Supreme Court decided that your carrier doesn't need to tell you if your credit has caused you to pay more.

In concurrent cases against Geico and Safeco, the Justices unanimously agreed that the companies were not wrong in charging certain poor-credit customers more without notifying them.

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