Cabot Credit Base
Credit-Based Insurance Scores
Getting credit where it is due should be the highest priority for anyone applying for utility service, loans for a car or home or obtaining a credit card. At Childress Insurance Agency, 2391 West Main Street, Suite A, Cabot we have the right information to help you be well prepared in handling credit woes by taking proactive steps on the front end to keep things churning along.
Legally speaking, anytime you apply for things like insurance, the various companies vying for your business will base the rates you are offered on your insurance financial score. It is important to know what often determines these scores. Call us at (501) 941-1148 to get started on the road to a better score!
The manner in which you use credit is one factor. It suggests how responsible you are and that alone can aid insurers when companies evaluate policy amounts and options. Credit scores provide a picture of how well you pay back debts/loans. Maintaining low balances on credit cards is always preferable. Also, insurance rates can be heavily influenced by your overall credit usage (hint: less is more in terms of credit card balances), collections against you by creditors and bankruptcies.
Another factor has to do with the number of insurance claims may already exist when applying for new coverage through a different carrier. If you have teenagers, accidents behind the wheel are a constant threat and mounting claims does impact your insurance score. In addition, if you’ve made it a habit to apply for every credit card offer online or in the mail, chances are you’ll face higher premiums and rates. Keep them to a minimum. Note: Submitting applications for a vehicle or home falls into a different category; insurers do not tend to look at these as harmful to a person’s score.
If you’re unsure about your credit status, you can request a credit report from different credit rating agencies, including Equifax, Experian and Transunion. The Federal Trade Commission, Consumer Data Industry Association and the American Insurance Association offer valuable information as well. For a list of these and other resources, visit our office Monday-Friday from 8 a.m. 5 p.m. or call (501) 941-1148. We also encourage you to visit our Facebook page.
So, don’t wait a second longer – get in touch with us today!