The Poverty Premium of Credit Scores

Their logic? People with lower scores are statistically more likely to file claims.

Which means you can be a flawless driver—no tickets, no accidents, cautious to a fault—and

still pay more for insurance simply because your credit dipped. Studies have shown

something disturbing: a driver with a clean record but poor credit can pay more than a

driver with a DUI and excellent credit. Let that sink in. The system trusts a financially organized

drunk driver more than a responsible but financially stressed one. That’s the poverty

premium in action. And it keeps spreading. Landlords use credit scores to decide who gets housing.

Utility companies use them to determine deposits. Some employers—especially in finance,