Does Bad Credit Effect My Insurance Rates?

When it comes to insurance there can be many questions, for instance, how much does it cost? Are there different types of insurance?  What kind of coverage will I receive?  These are all very good questions but the most important, and common question asked is, will my credit score affect my insurance rate, and if it does, what kind of affect will it have on it. The answer is yes. Your insurance rates are affected by your credit score, and honestly, it can have a not-so-great affect on your rate, or it can have a wonderful affect. It depends on your credit and types of Insurance.

Health Insurance

Health InsuranceWhen it comes to health insurance, your credit is not used to determine whether or not your rates will be high or low for General Health insurance, but can change your rates for Life Insurance. While a low credit score won’t directly lead to higher insurance rates, it can, however, indirectly affect your rate. The insurance company, will ask a series of questions that can possibly lead to a credit check. The company then uses this information to ensure them that you can afford what you’re buying and that you will stay with that company for a long period of time. Due to new changes on Health Care laws, Click here to find the lowest health insurance quotes in your local area.

Auto Insurance

Auto InsuranceMost Auto insurance companies, do use your credit score quite frequently when deciding your rates for your policy, which is a surprise to most auto insurance shoppers. When you think about buying a car, your credit score immediately goes into your thought processing for the purchase, but not so much for the insurance. Some companies apply your scores on the initial application for the insurance, while others check the scores every few years. Normally, a lower credit score has up to 50% higher insurance rates.

To find your best option for Auto insurance in your local area, Click Here

Home Owners Insurance

House InsuranceLike any other insurance, home owners insurance is also affected by your credit score. Insurance companies use it to predict risk, as they do with other types of insurance. They look for a reliable pattern, and are more interested in how you pay rather than what you owe.

For this specific type of insurance, companies look at different factors to weigh out what your rates will be, for instance, how much you owe, how much new credit do you have, length of the history, and payment history. To get more information on receiving Home Owners insurance please Click here, and review your rates!

Having insurance is important, all insurance, Whether it be health, life, auto or home owner.  It is necessary for modern-day life. That is why having good credit is imperative. Insurance companies need to know what their risk is going to be when giving you their coverage. If your credit score is low, companies will feel more comfortable with giving you a higher rate so it lowers the risk for the company. If you have a suboptimal credit history, you can work on cleaning it up with a few different tips.

  • Keeping your balances low
  • Paying off your debt
  • Keeping copies of your credit report
  • Making sure to make your payments on time.
  • Avoid opening new accounts

These simple steps can get you on the right track to consolidating your credit. You can also start by shopping around and comparing your rates for health insurance rate by clicking Enroll Now below.

Need 2016 HealthCare Coverage? There is still time to qualify!