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Your Credit Score and Your Premium

posted by TrueNorth Financial Strategies on Monday, July 25, 2016

Your insurance premium is determined by a number of factors such as: where you live, your age, your claims history, how many miles you drive, and your credit score. Today, we discuss why these factors are used to determine risk, specifically the impact of your credit score to your insurance premium. 

Credit Score and Premium Connection

Research indicates that if you are responsible for your finances, you will also be responsible on the road, when taking care of your home, and with your health.

Along with motor vehicle reports, loss reports and information gathered on your application, your credit score is used to determine how likely it is that you may experience a loss. Statistics show that a higher credit score indicates a lower risk, which translates to a lower rate. That's certainly good news for those with a good credit standing. 

Improving Your Credit Insurance Score

To take advantage of the best possible insurance rates, take the following credit-improving steps:

• Pay all your bills on time. Late payments and collections wreak havoc on your credit score. Plus, the longer you make payments on time, the more your credit score will improve. 
• Keep you credit card balances low.
• Pay off your debts rather than moving them around from card to card. Instead, pay down your revolving credit. 
• Apply for credit cards only as needed; do not open new accounts just because you've been offered them. 
• Search and select loans, mortgages and credit cards with the lowest interest rate within a specific time period. 
• Do not close unused credit cards as a means of raising your credit score. Conversely, do not open new accounts to increase your available credit. 

TrueNorth Can Help

TrueNorth is here to help with all of your personal risk management needs and are equipped to provide your family with a financial strategy. Contact us today at (800) 798-4080 to learn more about how TrueNorth works to ensure the things that matter most to you and your family are protected and accounted for. You can also access these resources and reach out to us at www.iTrueNorth.com.