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Mar 22, 2012 at 19:38 comment added JTP - Apologise to Monica @duffbeer703 - Do we agree this is not an exact science? One can be cash rich, really rich, and for lack of having 'normal' history has a report that doesn't quite reflect their true risk? (And I might agree, the system can't take everything into account, this may very well be good as it gets.)
Mar 22, 2012 at 13:35 comment added duffbeer703 The fact that people behave differently with credit cards or other abstract forms of money is precisely why credit scoring is a popular way to assess risk. Use of credit is a great proxy for studying behavior subjectively. If you were a car insurer, would you want to give a premium rate to someone who treats credit card limits as cash in hand? In any case, people here seem to equate the credit card with consumer behavior, which is 100% backwards.
Mar 21, 2012 at 23:26 history edited JTP - Apologise to Monica CC BY-SA 3.0
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Mar 21, 2012 at 22:53 comment added Dilip Sarwate +1 for the whole post and also for the "charge gas, my cable bill, ..." comment. Unless one believes that having the cable bill/satellite TV bill go directly to credit card will lead to excessive pay-per-view usage, this is a relatively safe use. Some companies allow the account owner to set dollar limits on how much pay-per-view can be charged which is useful when children are involved, less so when the account owner is an impulse buyer and knows how to over-ride the set limit.
Mar 21, 2012 at 21:40 history answered JTP - Apologise to Monica CC BY-SA 3.0