How Does Poor Credit Affect Insurance Rates?
Is It Fair For Insurers To Use Credit As A Risk Factor?
Many consumers are not even aware that bad credit and high insurance rates can go together. You may ask, for example, what your financial issues have to do with your risk as a driver. You would not be the only one asking that question either. Many critics believe this practice is unfair. It puts a heavy burden on people who are already struggling with bills, and who could be good drivers with clean driving records!
Categories: Car Insurance Tags: auto insurance, credit
Credit Scores and Insurance
You may, or may not, realize that your credit can affect the amount you pay for some types of insurance! For instance, many major car insurers will not give their best rates to applicants with poor credit, and some will actually refuse coverage for very poor credit! So you can be a great driver with no recent tickets or accidents on your record, but not get the best rates if you have a low credit score.
This article explains credit score, because understanding your credit is the first step to take to improve it. And even though you can do some things to improve your score quickly, it usually takes awhile.
Categories: Car Insurance Tags: credit
