LANSING, Mich. (AP) - The Michigan Court of Appeals says the state can prohibit insurers from using customers' credit scores to determine home and auto insurance rates.

The 2-1 decision released today reverses a 2005 ruling by a lower judge allowing companies to use credit scores.

Generally, the better one's credit score, the lower a customer's insurance premium will be. One with a worse score usually pays a higher rate.

Regulators say the practice is unfair and disproportionately affects minorities and younger insurance holders.

The industry says those receiving discounts for good credit scores will pay higher premiums if the ban takes effect.

Insurers can keep using credit scores pending the outcome of an appeal to the Michigan Supreme Court.