Political Cortex: Brain Food for the Body Politic

One retired physics professor did not qualify for Progressive's lowest rate because he had only 3 credit cards (instead of 5), and he had not had a credit card or loan before the age of 21.  Most baby boomers will not have had loans before age 21 either.  Progressive says it's because those who with the longest credit history tend to file fewer claims.  It's all statistics and heaven help you if you don't fit in the statistical box.  Some states are fighting or banning use of credit scores to set  premiums; other states (Arizona, for one) consider it perfectly legal.

Employment

More and more companies are screening employees using credit scores.  Beyond the obvious problem that if a person cannot get a job because of a bad credit history, they are going to have difficulty clearing up that history, there are a number of reasons someone might have a bad score having nothing to do with their fitness as an employee.  Maybe there's a reporting error, ID theft or some other perfectly reasonable explanation.  It won't matter.  You won't get the job and no one will tell you why you didn't.

This is potentially a hot political issue especially in the "ownership society" so desired by conservatives.  How can people rehabilitate themselves if they are not allowed to rehabilitate themselves.  Old mistakes and indiscretions will haunt forever.

Landlords

A credit check may make it impossible to rent an apartment.  There may be a variety of good reasons unrelated to financial responsibility but it won't matter.  For example, millions of students with families live in campus housing.  Even a letter from their housing office won't help without a real rent history.  Some landlords won't even accept advance rent of three months or more.  

Local Utilities

If you ever lived on campus you probably didn't pay a separate utilities bill.  When you move, you'll probably have to pay a deposit for your utilities.  Where are they going to get the extra rent and utility money? Politics in self-reliant America may make it harder and harder for people to learn from past mistakes.  Even if they didn't make any mistakes, they may still find themselves being financially punished.  In fault-finding America, "you made your bed, so sleep in it"

What does Consumer Reports suggest? Go to www.myfico.com and "order the $44.85 package" .  Great, too much money.  You always hear you can get your credit report free, but sometimes you cannot get it at all whether, by mail, by phone, or online.  This can happen if , for whatever reason, such as identity theft, the credit bureaus are not satisfied as to your identity

Ways to improve your credit score.

1."Sign up for automatic bill payment"
2."Watch the timing of your spending".  If you know you'll be applying for a loan soon, cut down spending for a few months and pay down some debt.  It'll look good.
3."Limit credit card applications"  Too many inquiries within the past 12 months is a derogatory report
4."Think twice before canceling cards."  You gain pints by using only a small percentage of your total credit line.  Canceling cards reduces the line and increases the percentage used.  Older cards provide you with an older account age which is sometimes an advantage.
5."Make sure credit limits are posted on your statement.

On Consumer Reports.com How to read your credit report: http://www.consumersunion.o rg/pub/core_financial_servi ces/002470.html