Poor Credit Scores Influence More Than Lenders
People with good credit are finding it difficult to get many types of loans these days, especially mortgages. For those with poor or damaged credit, the task is even more daunting.
But what about home and auto insurance? Will a poor credit score affect your ability to get the type of protection you need at the right price too?
Since insurance companies have found a direct correlation between credit scores and the number of insurance claims made, the simple answer is yes. Your credit score will heavily impact the coverages and rates for which you qualify.
It's all about risk, and a bad credit score indicates to an insurer that you are potentially a "high risk" customer who may rely on insurance too often when mistakes happen. So, taking the initiative to improve your credit score will not only help with lenders, but it may also save you up to 30 percent on your home and auto insurance too.