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.
Research indicates that if you are responsible with 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. A recent study by WalletHub.com and AAACreditGuide.com found that in the state of Wisconsin, people with no credit pay an average of 64% more for car insurance than people with excellent credit.
Take the following credit-improving steps to get the best possible insurance rates:
- Pay all your bills on time.
- Keep your credit card balances low click this over here now.
- Apply for credit cards only as needed.
- 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.
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