If you have noticed that you’re having a difficult time getting car insurance coverage and can’t figure out why, the problem might be your credit score. It seems crazy that your credit score would have anything to do with whether or not you can find car insurance, but the truth is, it does. Your credit score can have an impact on many different aspects of your life, and car insurance is one of them. Signet Insurance Group is here to talk about your credit score and why it matters when looking for the right car insurance policy.
Factors that Make Up Your Credit Score
Your credit score is somewhat difficult to understand. The way that it is constantly fluctuating can be unnerving. There are several different factors that can have an impact on your credit score. Here are some big ones.
– Payment History: Paying your bills on time will have a big impact on your credit score. This alone takes up 35% of your credit score.
– Amounts Owed: It doesn’t really matter how many loans you have opened right now. What matters far more is how much of your total credit you are using. It matters how high your balances are.
– Length of Credit History: Having accounts opened for a long period of time which allows you to show you pay your balances is another way that your credit score is impacted.
– Credit Mix: The kinds of accounts you have open are going to have an impact on your score as well. A mixture of credit cards, mortgage loans, car loans and more can have a positive impact on your score.
– New Credit: If you all of a sudden open too many accounts at the same time, it can negatively impact your credit score.
Why Insurance Companies Look at Your Credit Score
When you think about having good credit, you usually think that it is necessary to borrow money not to get car insurance. However, most car insurance companies are going to require your credit score as they determine what your rate is going to be. There are very few states that don’t allow insurance companies to use your credit score when they determine your rate. Some of the things that they will look at as well when determining your insurance rate is going to be
– Accidents on record
– Recent claims on your history
– Credit score
Home, Business, Life & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV
If you’re looking for car insurance and are having a hard time, you can turn to Signet Insurance Group to help you find the right company for you. If your credit score is standing in the way of you getting the rate that you are looking for, there are several ways that you can improve your credit score right away. At Signet Insurance Group, we can help you find the best rates possible as you navigate the insurance world. Call us today!
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