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Chapter 9. Insurance and Your Credit Sco... > History of Using Credit Scores to Pr...

History of Using Credit Scores to Price Insurance Premiums

Insurers have actually been using credit information since at least 1970, when the Fair Credit Reporting Act first sanctioned the practice. Lamont Boyd, now a Fair Isaac executive, remembers his days reviewing credit reports as a young insurance underwriter in the 1970s.

Boyd says his job was to look for “clearly 'bad' signals,” such as bankruptcies, foreclosures, or collections, which would be used as a reason to turn down the customer who was applying for insurance.


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