Can Good Credit Mean a Lower Insurance Premium?
Posted Scott B. Cooper on Sep 02, 2014 in General
Posted on Sep 02, 2014
According to the Insurance Information Institute, a good credit rating can help you get better rates on your insurance. Therefore, you may be able to save a considerable amount of money on your various insurance coverages just by having good credit. This is a fact that many people do not know.
Here are some helpful tips on how to build and maintain a good credit history
Pay bills on time. The best way to build a solid credit score is to make a habit of always paying your bills on time in full each month. Your goal should be to build a long history of reliable bill paying behavior.
Limit the number of credit cards. Have no more than three or four credit cards and hold on to them for a long period of time.
Keep balances low and use no more than 30 percent your available credit. This, of course, means resisting the temptation to accept pre-approved card offers in the mail or retail credit cards even though there may be a discount available for opening a new account.
Check your credit report annually. Look for errors and correct them as soon as possible. By law, you are entitled to one free credit report from each of the three reporting agencies once a year. Go to www.myfico.com for more information.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. For more information, go to the Federal Trade Commission’s Web site on credit.