Why is interest rate higher for Full-Timers
The other day I received an email from the “Good Sam Finance Center” that many of you may have received as well. Just out of curiosity I looked at the interest rates and there were four different cat...
Forum Discussion
Lender and insurance companies always seem to be open for all forms of conversation with reflection on "The Good - The Bad & The Ugly"...
A friend of mine was a big wig with one of the major car insurance companies and I asked him one afternoon "what is the biggest fraud/hoax perpatrated on the unsuspecting public by insurance companies?" He didn't hesatate even a moment when he said "Bad Credit Rates"!
He said the primary reason for the higher rates is "people with poor credit generate more claims and higher amounts of money of than those with good credit"! So I asked him where the fraud/hoax is and he said "there is nothing other than insurance company BULL to substantiate those rates.
It all started in a boardroom where the decision was made. The rationall was the banks charge more for people with bad credit so why don't we? The bad credit folks hiking up frequency and $ amounts could not be substantiated and was never even an issue. They had an avenue to make more money "BIG MONEY" and took it.
And NO, my friend and his company are not open for discussion... :)
Harry
A friend of mine was a big wig with one of the major car insurance companies and I asked him one afternoon "what is the biggest fraud/hoax perpatrated on the unsuspecting public by insurance companies?" He didn't hesatate even a moment when he said "Bad Credit Rates"!
He said the primary reason for the higher rates is "people with poor credit generate more claims and higher amounts of money of than those with good credit"! So I asked him where the fraud/hoax is and he said "there is nothing other than insurance company BULL to substantiate those rates.
It all started in a boardroom where the decision was made. The rationall was the banks charge more for people with bad credit so why don't we? The bad credit folks hiking up frequency and $ amounts could not be substantiated and was never even an issue. They had an avenue to make more money "BIG MONEY" and took it.
And NO, my friend and his company are not open for discussion... :)
Harry
