Business Marketing & Finance Resources

The world of insurance is ruled by statistics. Actuaries collect all the information they can about every traffic accident in the US. Then, because everyone wants the most complete information possible, the insurers share the information about their own claims and the accidents they have found where no claim was made. It makes for an impressive amount of data. The majority of the information about claims is routed through the Comprehensive Loss Underwriting Exchange (CLUE). Because this is a national resource, all the major insurers from around the country search it before making quotes for new business. If there are no claims registered against your name, the premium will be the standard rates for someone of your gender, age and driving experience with local variations based on where you live. But if one or more claims are registered, the new insurers may decide you are a high-risk driver and try to deter you with a high premium. There’s nothing illegal or unethical about this. It’s just the way the business works.

Because it’s a national resource, the quality of the information is usually quite reliable. When a search is made, your history over the last seven years is supplied. If you are worried about what data is stored about you, the Fair Credit Reporting Act gives you the right to a copy. Write to Consumer Disclosure, PO Box 105108, Atlanta, Georgia 30348-5108, or you can call (866) 527-2600 toll free. If you find any of the information is wrong, you are either allowed to have it put right or to have an explanatory note attached to the information explaining how the loss came to be made. Unfortunately, some of the insurers run private exchanges in individual states. It can be more difficult to police the accuracy of this information. That’s why it’s good news to see Attorneys General policing the system. In Massachusetts, for example, ten insurance companies have agreed to pay penalties for failing to correct records in their private exchange. The initial findings of at-fault were accurate, but the companies then failed to record when appeals reversed the findings. This left thousands of motorists wrongly recorded as at fault. So, if you have any reason to suspect your local insurance industry is relying on inaccurate information about your claims history, it’s vital you take action. Failure to have the record set straight can cost you thousands of dollars over the years. If the information in CLUE is correct, get your local state’s Department of Insurance to check into any local databases.

As with every computer system around the US, the quality of the information is only as good as the clerks who input the data. It’s so easy to make a mistake. A single keystroke on one variable – at fault/not at fault – can represent major increases in your premium rates. So, if you get unexpectedly high auto insurance quotes from your internet searches, you should check out the quality of the information stored against your name. Go to CLUE. Ask about state exchanges. No-one else is going to do it for you. Having the courage to challenge the system is what earns you cheap car insurance rates for the years to come.

Just about everyone has been in the position of wanting something that they just can’t afford, of coming up short when it’s time for a big shopping trip or big-ticket item. Imagine how great it would be to be able to buy the items you want, while paying for them over time, a little at a time, in an amount that would fit in your monthly budget. Consumers would flock to a product that met that need, wouldn’t they?

Well, that product exists, and consumers do flock to it. It’s the common, everyday credit card, and consumers have been turning to those little rectangles of plastic more and more during the past decade.

By allowing consumers the opportunity to make the purchases they want, when they want them, and to pay for those purchases over time in amounts that fit easily into their monthly budgets, credit cards have been meeting the needs of happy consumers for decades. And when your business begins accepting credit cards as a valid form of payment, you can expect to experience all the benefits of pleasing a wider range of customers. In addition to flexible payment arrangements, credit cards offer many other advantages to consumers.

Credit cards are more convenient than bulky cash, and can be used worldwide without the need for currency conversion – a real boon to travelers. For online, catalog, and television shopping, credit cards offer much speedier service than checks, which can delay order fulfillment until the check clears.

Credit cards can also be used to pay for purchases of widely varying amounts, which means customers who use them don’t have to bother with making detailed shopping lists and plans before they hit the stores. It also means that customers who use credit cards have a greater degree of altitude when making impulse purchases. Rather than being bound by the cash in their pocket or purse, credit card users can buy items they see which they might not otherwise have planned on purchasing.

Retailers also benefit: credit card users make more costly impulse purchases, and more frequent impulse purchases, than those shoppers who use cash, meaning your profits can be significantly increased with credit card sales.

Regular, conscientious use of credit cards is the number one way to build a strong and healthy credit history, and a high credit score. Today, consumers are bombarded by messages from the media, advising them of the importance of having a high credit score and a strong credit history.

Consumers know that these factors can have a significant influence over their ability to qualify for loans for homes, cars, and other items, and can also have a direct bearing on the interest they will be asked to pay for those loans. In addition, consumers know credit scores and histories are used for much more than loans, and are considered when applying for cell phone plans, some utility services, home and auto insurance, and even employment.

Credit scores have become more than an indicator of a consumer’s willingness to repay loans, but are now used as an indicator of overall lifestyle habits. Therefore, consumers are more likely than ever to use credit cards to help strengthen their scores.

Credit cards also offer some alluring bonuses to consumers. To attract a wider customer base among an increasing field of credit card issuers, many credit card companies now issue reward points each time their card is used to make a purchase or pay a bill. Over time, those points add up, and they can eventually be redeemed in exchange for a wide range of perks and benefits, including jewelry, electronics, and other merchandise, airline and hotel vouchers, cash, and other valuable incentives.

Lucrative reward programs are one of the primary reasons why so many more consumers are using cards today than they were even a few years ago, when rewards programs were few and far between.

Finally, credit cards offer greater security than cash or checks, which can be lost or stolen. While cash is gone for good once it’s stolen or lost, stolen or lost credit cards can be replaced with a single, simple phone call.

Most cards also offer terms which do not hold a card holder responsible for any charges made on the card once it’s lost or stolen, offering consumers a greater degree of security and peace of mind. And many cards today also offer extended warranties on computers and other electronic goods that are purchased using the card, adding another level of security for consumers who use credit cards.

It’s easy to see why credit cards have become more widely used among consumers than ever before. By accepting credit cards at your business, you can begin to attract a wider range of customers and increase your business’ bottom line. And all it takes is a few moments today to fill out a merchant account application.