Did you know: Your credit score can change on a daily basis and just a one point change can cost or save you hundreds on your Insurance?
Your credit score influences the credit that’s available to you and the terms. It’s a vital part of your credit health. Your credit score can have a profound effect on the amount you have to pay not only for auto insurance, but for homeowners insurance also and perhaps on health and life insurance.
How they rate you:
To factor in credit ratings, insurance companies use either the Fair, Isaacs & Co. (FICO) or the three-digit credit score alone; order an “insurance score”. The companies generally do not look at your actual credit report. Instead, it receives your credit score or your insurance score from one or more of the three major national credit repositories; Equifax, Experian and TransUnion.
Factors to insurance ratings:
Many factors, of course, are considered when insurers compute both auto and homeowner insurance rates. For autos, your age, the type of car you drive, how many miles you drive and whether you live in an urban or rural area are considered. For homeowners insurers, type of home, location, how close it is to a fire station, and construction are just a few of many factors. Just how big an impact your credit record has on your auto and homeowners insurance bill varies, based on where you live and the insurance company you choose as well as on what is in your credit report.
Where to find credit reports or scores:
It is important to understand the information in your credit report and how it could affect the cost of your auto and homeowners insurance. Below are a few links for more information on your credit report and score.