Home / Weekly Tips / Insurance Inquiries Won't Hurt Your Credit Scores

Creditnet Featured Article

Insurance Inquiries Won't Hurt Your Credit Scores

You might be surprised to find out that insurance companies will pull your credit as part of the application process for an auto policy. What do your credit scores have to do with your ability to drive safely anyway?

Well, your credit score may be a better indication of your financial risk, but insurance companies believe it can indicate a lot more than just your ability to pay back what you owe. In fact, insurers will argue that there's a strong correlation between consumers who have low credit scores and those who file the most auto claims.

The good news is these credit pulls are considered "soft inquiries", so they won't hurt your FICO scores at all. The bad news is you'll need to be prepared to pay higher auto insurance premiums if your credit scores are bad, even if you've never had an accident in your life.

on Mon, 2012-05-28 17:00