tag:blogger.com,1999:blog-6276531209730408101.post8134547036263478688..comments2024-03-18T21:13:23.616-04:00Comments on Ecofrugal Living: Save money, damage your credit scoreAmy Livingstonhttp://www.blogger.com/profile/16362533758291353748noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6276531209730408101.post-72673400245732516042010-06-28T09:29:48.375-04:002010-06-28T09:29:48.375-04:00Comment received by e-mail:
If (and I do say “...Comment received by e-mail:<br /><br /> If (and I do say “if”) credit card companies track your purchases to affect your credit rates, it is a fairly good bet they are using statistical techniques to make the decisions. “In the past, people who purchase from Target are 3 percent more likely to default than people who purchase from K-Mart.” – that sort of thing. That is how the insurance industry generally does it – much to everyone’s annoyance because it means they cannot give straight answers to simple questions like “Why did you disqualify me just because I have lived in the same residence for 3 years?” (This last example actually happened to me.)<br /> <br /> If they are doing it statistically, then their decisions become matters of interest and curiosity, rather than statements of the absurd. Instead of asking what kind of idiot would disqualify me for choosing Target over K-Mart, the question becomes “Why are Target shoppers historically more likely to default than K-Mart shoppers?”<br /> <br /> Of course, this kind of co-relational evidence only makes the practice seem all the more insidious. In fact, I have a weak memory that possibly there are now laws controlling the insurance industry’s use of these methods.Amy Livingstonhttps://www.blogger.com/profile/16362533758291353748noreply@blogger.com