I always assumed credit scores were an integral and historic part of the American financial system.
They were not, they are very recent，most of your parents didn’t have credit scores growing up, and as you can probably tell or at least intuit, it’s mostly just a b******* scheme for those with capital to accrue more capital by invading your privacy.
What will blow your mind is that there is now an insurance score that insurance companies use similar to a credit score.
What’s it used for? Determining how much you use the insurance you pay for? Any more info?
As far as I understand it, yes. It’s used to determine whether you’re insurance worthy and at what rates you will pay.
https://www.insurance.com/insurance-score
Probably a good thing. I have a relative who claimed in her homeowners insurance for all sorts of things, then just shopped companies when they raised rates. Definitely an abuser of the system.
Meanwhile I tried asking mine for guidance on when to make a claim and it sounded like “any time you want, then we’ll accept it or not and decide how much to raise your rates”, and I was warned by friend they may track questions like that to use against your claim or to raise rates before a claim. So if each, abuse all around