Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Insurance
Profile Image

Question By
lminter2010

1 Contribution
1 Person Helped
My credit score keeps going up, but my home and auto score is going down. Why is this?
My credit score has gone up my more than a 100 points in the last 2 months while my auto and home insurance score have dropped by about 100 points. I only use about 1/7 of my credit limit every month and pay it off right away and pay my other loan on time every month. What has caused my auto and home insurance score to plummet?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
60 Contributions
76 People Helped
Most Helpful Response

Iminter

Helpful to 2 out of 2 people

I wouldnt worry about the home and auto scores on CK.  I have seen countless people on here (including myself), that have all their accounts in good standing and a good FICO, yet the home and auto numbers are not very good and even poor.  They must use some strange set of criteria to figure them.  Mine says poor, yet I get the best auto and home rates with one of the top ins companies.

If you figure it out, let us know.  Maybe some home brew CK thing, Who knows.  Whatever they are using to figure it, it doesnt seem very intuitive to me.

Rich

Reply by
lminter2010

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

I did some research and found out that credit checks are a big factor that effect auto and home insurance scores. I have had 3 credit checks from 3 different credit card companies in the past 6 months or so. I had never had any credit cards before that. Using them minimally and paying them off right away has really helped to build my credit, but I believe it is the 3 credit checks that have caused my auto and home scores to decrease in the opposite direction just as much. The insurance companies rate people as a greater risk when they see someone applying to lots of credit cards. It can be assumed that someone needing lots of credit cards would be less able to pay for an accident out of pocket and more likely to file a claim. Although it makes sense, it seems a bit unreasonable how much it effects the score. I will provide an update in a few months as to whether my score increases as I should not need any credit checks for a while.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.