Your Credit Score and Insurance

Your credit score impacts more than just your ability to secure a low interest rate on a loan or credit card. Today, non-lenders are relying on credit scores as a benchmark to determine eligibility and rates for homeowners and car insurance and rebuilding credit could save you thousands of dollars each year.

A correlation has been drawn between lower credit scores and a driver’s potential to have a car accident, so the lower your credit score, the higher your premium. For example, on a $40,000 automobile, you could be looking saving over $500 a year if you can secure a preferred credit rating. If your credit score doesn’t qualify you for a preferred rating, it’s smart to take a look at credit repair. A great starting point is to pull you free annual credit report to see where you stand. If you can hold out a few months to repair your credit score by disputing any negative events or paying down some debt, you may get a lower interest rate, which could save you hundreds of dollars annually.