Insurance Rates Based on Credit, You Bet!
All too often I hear someone tell me, “but my neighbor is paying $300 less than I am and we have the same house!”. In case you didn’t know, one of the key elements that determine your insurance rates are your credit score. So, below are 5 tips I’ve picked up on over the years…
- Make the primary insured individual the one with better credit. You see, the insurance companies rate for credit based on the primary applicant of the insurance. So, if the misses has better credit than the mister, make her the primary applicant (a.k.a First Named Insured).
- Stop Opening Retail Credit Cards. We’ve all heard it…”do you want to save 25% today by opening a store credit card?”. Although it may be tempting to save $20 on those designer jeans, resist the urge to do so. Insurance companies may factor this into their rates.
- Avoid Carrying High Balances On Your Credit Cards: My mother used to tell me, if you don’t have the cash then you shouldn’t buy it. Here’s a trick, charge cards differ from credit cards in that you must pay in full each month. Plus, they still give you all the rewards points that a normal credit card does.
- Make Your Payments on Time: Whether it’s your auto loan, your mortgage, or your credit card bills…pay on time! Late payments show up on your credit score and can make your insurance premiums more.
- Take Advantage of Some Companies “Auto Pay” options: Many companies (cable, utility, etc.) now offer an auto pay option where they will allow you to automatically have your payments debited from your bank account. Doing this will reduce the chance of missing a payment, making a late payment, or financing a payment on a credit card.
Remember, whatever your insurance needs are, I’m here to help. (844)MrQuote