When you ask for a quote for insurance from Netquote can they pull a credit report on you?
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Insurance companies several years ago got the commissions in most states to allow them to rate drivers based on credit rating ... good credit = good driver, bad credit= bad driver ... which is just a bunch of BS. But insurance companies needed another item to based increase charges on. And the kicker is when you shop for insurance and go to several companies, all the checks does lower your score. Just another racket by insurance companies to manipulate the system.
unfortunately what they said is true, any insurance company will run a credit report. or even if you are buying anything big they do a credit report, they want to make sure they get paid.
The legality of that is questionable, but it is common practice now days in almost any business. At least they told you about it, most don't. Employers check it now days also. If your credit report looks bad you will start having problems getting jobs, rental houses, insurance, and who knows what else, and most denials will not state that it was because of your credit report. Is also ironic that checking your report leaves a bad mark when all the businesses want to check it without your consent or knowledge. Clean up any bad items on your report, wait a bit, and try again. Good luck.
ALL insurance companies will pull your credit score to give you an auto quote, HOWEVER, insurance company credit scores don't count against you. So, if you have too many inquiries - it's only inquiries that YOU initiated - credit card offers, 90 days same as cash, that sort of thing, that you applied for.
If you HAVEN'T been sending in replies to credit card offers, this is a major red flag that perhaps someone has stolen your identity. I'd call the "big three" and put a fraud alert in, in that case.
Yes, it was probably in their terms and conditions. Insurance companies use credit scores as a component to their risk models. I think it's unfair, though I work for an insurance company, because it's basically saying all people with lower credit scores are likely to be bad drivers/file homeowners claims, etc.
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