Why Do Insurance Companies Go By Your Credit Score in Whitney, NV & How to Improve for Lower Rates?

If you are like most people, you know how important it is to have a good credit score. This number seems to have an impact on many different parts of your life. What you may not realize is that it can have an impact on how much you pay for your insurance rates. No one wants to pay more for insurance than they have to. Signet Insurance Group is here to talk about how your credit score can impact what you pay for insurance so that you can get the best rates possible.

How Your Credit Score Impacts What You Pay for Insurance

When it comes to getting insurance for your home or automobiles, there are several factors that play a role in what you will pay. There is an insurance score that the company will give you based on several factors. One of these factors is what your credit score is. There are few states that aren’t allowed to look at a credit score when determining how much someone will pay in premiums. Your credit score is a way for an insurance company to measure the risk you pose to the insurance company. The higher your credit score, the lower the risk they feel you are. To determine your credit score, most insurance companies will run a credit report to determine what your score is and what risk you pose.

Your Credit Score Matters for Insurance

There are have been several studies conducted that shower there is a link between credit scores and claims with insurances companies. They show that people with a lower credit score are going to be more likely to file a claim. Even people with a lack of credit history can see an increase in their rates as they are also considered to be a riskier candidate.

How to Improve Your Credit Score

A good credit score for insurance companies is between 670 and 739. If you aren’t in that category, you might want to do some things to improve your score. Here are some things that you can do to help improve your score as well as lower your insurance premiums:
– Pay your bills on time. Make sure to pay every month and on time.
– Keep your credit utilization low. This is the credit that you are using when compared to your credit limits.
– Monitor your credit report. If you notice that there are changes you or errors that you don’t understand. Keep on top of it to avoid fraudulent accounts.
– Don’t open too many new accounts. Every time you open a new card, it can hurt your credit score.

Home, Business, Life & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV

If you are looking for home or auto insurance, you can turn to Signet Insurance Group to help you get the best rate possible. We will do the work so you don’t have to. Call us today!

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