Did you know that your credit score and history affects how much you pay for premiums with insurance companies? It does and improving your credit score can reduce the amount you have to pay to the insurance company, something you probably wouldn’t have known unless you read about it somewhere (like here!) because it’s not very obvious.
What it comes down to is risk and history has shown the insurance companies that people with lower credit scores are, in general, riskier situations to insure than people with higher credit scores. Whether you agree with that or not, the math doesn’t lie and insurance companies aren’t in the business of being spiteful. They’re in the business of making money off insuring people, the numbers had to have told them something for credit score to be a factor.
Now, how can you improve your credit score? The credit score has many components and they’ve been written about over and over and over again so I won’t go into it here. Essentially be a responsible borrower, don’t have too many lines of credit, don’t use too much of your credit, and make your payments on time. Past that, you’ll have to search online about credit scores but those are the basics.
Improve your score, reduce your premiums.
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