CreditDunce wrote:Ain't it the truth. They get you no matter what. Yes, there is a code that penalizes you for having more than 5 total accounts (not just CC's). But don't forget the codes that penalize you for not having at least 10 accounts that you have paid satisfactory in the last 2 years. Just be sure to not have more than 11 accounts paid satisfactorily in the past 2 years. Or have fewer than 7 CU and Mortgage accounts.
Other codes say things like average bank CL less than $13,001. Bank credit limits less than 95% of total limits. Not having at least 1/3 of your accounts be credit union or mortgages. Having more than 25% of your accounts closed. Opening new accounts, but not closing the old accounts. If your oldest account is not a bank credit card. If your oldest account is less than 32 something years. If you have a long established history, but your AAoA is less than 7.5. If you add the total months all of your accounts have been open is less than 1571 months or more than 1888 months.
I may be blurring some of the reason codes. Last year, I spent more time than I should looking at the codes. I came to the conclusion it was designed to be too complicated for anyone to understand by from the codes. However, I did see enough reports to believe having too many new accounts or too many retail cards can increase your auto/home insurance costs. The other codes don't seem to be as important. I was ignoring the regular derog codes (charge offs, public records, etc).
Here is the direct LN link
At the bottom are PDF with explanation of the home and auto codes.
Bloody hell! I got a headache just from trying to follow all of the contridictions. Wow. Just wow.
Thanks for posting this. Not that we needed any more proof of how unmitigatedly EVIL the insurance industry is.