Your Credit Score and Your Premium
Posted June 22, 2015
Your insurance premium is determined by a number of factors such as: where you live, your age, your claims history, how many miles you drive, and your credit score. Learn more about why these factors are used to determine risk, specifically the impact of your credit score to your insurance premium.
Credit Score and Premium Connection
Research indicates that if you responsible for your finances, you will also be responsible on the road, when taking care of your home and with your health.
Along with motor vehicle reports, loss reports and information gathered on your application, your credit score is used to determine how likely it is that you may experience a loss. Statistics show that a higher credit score indicates a lower risk, which translates to a lower rate. That’s certainly good news for those with a good credit standing.
Improving Your Credit Insurance Score
To take advantage of the best possible insurance rates, take the following credit-improving steps:
- Pay all your bills on time. Late payments and collections wreak havoc on your credit score. Plus, the longer you make payments on time, the more your credit score will improve.
- Keep your credit card balances low.
- Pay off your debts rather than moving them around from card to card. Instead, pay down your revolving credit.
- Apply for credit cards only as needed; do not open new accounts just because you’ve been offered them.
- Search and select loans, mortgages and credit cards with the lowest interest rate within a specific time period.
- Do not close unused credit cards as a means of raising your credit score. Conversely, do not open new accounts to increase your available credit.
To request a copy of your credit score, contact:
- Equifax at 1-800-685-1111 or www.equifax.com.
- Experian at 1-888-397-3742 or www.experian.com.
- TransUnion at 1-800-888-4213 or www.transunion.com.
We’re here to help with all of your personal risk management needs. Contact your Horst Insurance Account Manager today to learn about how we work to ensure the best coverages at the best possible price.
This flyer is for informational purposes only and is not intended as professional advice.