​What is credit scoring?

Many insurance companies look at your credit history to decide whether to issue an auto, home or other insurance policy or how much to charge. This practice is known as credit scoring or insurance scoring.

Insurance scoring has been controversial. A number of states, including Oregon, limit its use. 

Insurers in​ Oregon can’t:

  • Use a policyholder's credit information to raise premiums for an existing policy. 
  • Cancel or refuse to renew existing policies because of credit history problems. 
  • Use credit information as the only factor to decide whether to issue a policy.

Insurers in Oregon can: ​

  • Use credit information when deciding whether to issue a new policy but only if they use other factors, as well, and they can document that credit information helps them predict future claim costs. If credit history is used, insurance companies and agents must: 
    • Explain how the company uses credit information before running a credit check. 
    • Notify you before running a credit check. 
    • Explain any "adverse decision" - such as not offering a policy or the best rate. 

Consumers can:

  • Request a free copy of their credit report from the credit bureau. 
  • Work with the credit bureaus to correct any errors and have the insurer rerate their policy with accurate information. 
  • Request a rerating from their insurer once a year if credit history was considered at any time in the rating of their auto, home or other personal insurance policy. Premiums can't be raised as a result of the rerating and must be lowered if the consumer qualifies for a more favorable rate. 

​Credit bureaus

Equifax
800-685-1111

Experian
888-397-3742

TransUnion
800-888-4213

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GET THE HELP YOU NEED

1-888-877-4894

or email

cp.ins@state.or.us

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