Home Insurance and Credit Score

When it comes to your Home insurance and Credit Score, they both correlate together to give you your actual insurance rate. In order to calculate your insurance rate, insurance companies will look at factors such as your credit score and credit history. The reason these companies look at your credit is because in many cases, people with bad credit scores and credit history are more likely to file an insurance claim in the future, which makes them a higher risk for the insurance company. It is important to keep your credit maintained in order to receive a lower rate from any insurance company, including homeowners insurance.

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What is a credit score, you ask? First off, your credit score is based off of your credit history. How much debt you have, whether you are making your payments on time, and if you are default on any loan or credit cards are major factors in determining your credit score. The most popular scoring system used is the FICO scoring system, although many companies use different versions of it. The FICO system calculates your credit score ranging from 300 to 850, with 850 being the best. To raise your credit score, don’t take out too many loans and credit cards at once, make on time payments, don’t max out your credit cards, and pay more than just the minimum amount due. Those are just a few tips that will benefit you and your Home insurance and Credit Score.

Wonder what is your credit score? Click here to find out

If you didn’t know what a credit score was or haven’t checked on yours in a while, it is important that you look into it and check your credit score and credit history. If you have never checked your credit history, you wouldn’t know if someone has opened a line of credit in your name and not paid for it, which would negatively affect your credit. Checking your credit monthly is a good idea since identity theft is becoming more of a problem. Simple pre-qualified credit cards mailed to the wrong address or someone stealing them from your mailbox allows someone that isn’t you open credit in your name. Thus, it is important to check your credit periodically. There are some online sites that provide credit monitoring for a small monthly fee and they will let you know if anything has changed on your credit.

What if Your Identity is Stolen?   Click Here to make sure it’s not!

All in all, it is important to keep your credit in good standing in order to save money on any kind of insurance, but in this case homeowners insurance. Most insurance companies give you an insurance score that is simply based off of your credit score and history, so the better your score, the lower your rate will be. Keeping an eye on your credit and having a good credit history will help you with your Home insurance and Credit Score.

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