Credit report madness!!! Score might not be good afterall.
Behaviorkelton has a recent post about "no debt? bad credit rating?" asking this question.
"What if I do this?:
Use my credit card for all purchases, but pay it off at the end of every month.
Does that count as a "credit history"? "
No! That's exactly what I've done for years. Imagine my surprise today when our boat insurance renewal said "We did not give you our lowest possible premium due to the following information that we evaluated from your credit history:
1. You had no auto loans or leases reported opened within the last 10 years.
2. The average open date of all your reported loans and accounts was less than 20 years ago. (What???)
3. You have fewer than 2 open, satisfactory loans and accounts. "
We have one credit card account. DH and I each have our own cards (same #)and I pay it off monthly. Mortgage has been paid off for several years. We live within our means and anything and everything we might need or want goes on that one card. If I were to buy a brand new car, it would go on that card and get paid off because we get cash back and I really like the year end summary they send each year listing and breaking down charges.
You better believe I called the company to find out what's up. Answer: Insurance companies check credit reports to evaluate your likelyhood of submitting a claim. Evidently, because we have no loans (also no accident reports) we don't fall into their "norm" so instead of their best rate of $110. we get to pay $150. I've just begun digging into this.