When it comes to getting the best car insurance for the lowest price, finding discounts is a must. When calculating your premium, insurance companies look at your age, vehicle, driving history and location.
However, not many drivers know that insurance companies will also look at your credit report when deciding how much to charge you.
In fact, if you have a good credit score, you could save more than $200 on a six-month insurance premium. If you have a great credit score, you could be looking at up to $400 in savings depending your insurance company.
To see where your credit falls, you can do a quick credit score check online or through your bank, if it offers that service. Just keep in mind that your credit score and your credit report are not the same.
Your report has information about all your past and present credit accounts, while your score is a three-digit number based on how “good” or “bad” that report looks to creditors.
There are a lot of steps you can take to raise your credit score. The first step is to order a free credit report from any credit bureau (TransUnion, Experian and Equifax) and see if you can find any incorrect information that may be hurting your score. Credit bureaus sometimes include outdated information or wrong accounts on your report, and having these removed can add a quick bump to your overall score.
Once you know that the information on your report is accurate, you can check it every so often or enroll in a credit monitoring service that will alert you to any new changes.
By Admin –