You may not be aware of it, but in more and more states, insurance companies are taking a close look at your credit history before approving policies, coverage, and even the rates that you pay!
These insurance companies are using the information in your credit reports to develop unique scoring systems. These credit history-based scoring systems help many insurance companies determine whether you are high risk, low risk, or average risk. Not surprisingly, this can directly impact whether your policy is approved - and what rates you pay!
Does Poor Credit Make a Bad Driver or a Careless Homeowner?
You may ask, what does my credit history have to do with my insurance risk-level. If there is one industry that must use every available resource to manage risk, it is the insurance industry, and the insurance industry has determined, beyond a shadow of a doubt, that higher credit scores, typically, translate into lower insurance risks. The result: your credit history and credit score can save you a lot of money when it comes to home insurance, auto insurance, and health insurance could even soon become part of the picture as well!
Considering the above, it's not surprising that more and more consumers are monitoring credit on a regular and on-going basis, not only to have the opportunity of qualifying for lower interest rate financing for everything from homes, to cars, to credit cards and more - but to save money and get the best value in their insurance policies.