Did you know that your credit history strongly influences the cost of auto and homeowners insurance? Insurance companies now utilize “insurance scores”. An insurance score uses criteria extracted from your credit history to set your final rate. A poor credit score can result in a poor “insurance score” and higher insurance rates. It’s more important than ever to pay close attention to your credit score to avoid paying too much for your Home and Car insurance coverage.
Keep in mind that each insurance company creates their own insurance score from your credit history so discounts or surcharges will differ widely from one insurance company to another. Be sure to shop different companies to find the most favorable rate.
Wondering why?
Simply, historical data studies have shown that people who do not properly manage their finances are more likely to submit a claim.
Useful Tips
Visit www.annualcreditreport.com to order your free annual credit report. Review the information for accuracy and immediately dispute any errors in writing. Not only will it help save money on the cost of obtaining a new loan, but it will help keep your homeowner and auto insurance rates low.
Keep an eye on credit limits, late payments and other common credit problems. Lenders throughout the nation are reducing credit lines, increasing minimum payments and requiring higher credit scores. Smart consumers should make a point of keeping an eye on available credit and avoiding late payments, over the credit limits or other common problems.
