TWFG INSURANCE SPRING / THE WOODLANDS
  • HOME
  • INSURANCE SERVICES
    • AUTO
    • HOMEOWNERS
    • FLOOD
    • BOAT & RV
    • LIFE
    • BUSINESS
  • CONTACT
    • OUR TEAM
    • NEWS
    • INSURANCE TERMS
    • TWFG APP
  • SHOP INSURANCE
  • CLAIMS
  • QUICK QUOTES

How Your Credit Score Can Affect Your Insurance Premiums

8/12/2019

0 Comments

 
Picture
Your credit score is one of the most influential factors when it comes to financial outcomes in your life. Most people know that their credit scores affect their ability to obtain a mortgage or loan. What’s more, most people understand that the interest rates they pay on loans is tied to their credit scores. However, there are even more aspects of your life that are influenced by your credit score.
 
In fact, your insurance premiums can be directly affected by your credit score, which means that if your score isn’t great, you’ll be paying more for your coverage.
 
Insurance Scores
Many insurance companies use your credit score to generate a credit-based insurance score that is then used as a factor in determining your premiums. Credit-based insurance scores and your credit score are not the same thing. Insurance scores focus on only some factors of your credit history in order to gain an indication about how you manage risk. Factors that may be used include:
 
• Payment history
• Amount of debt
• Length of credit history
• Recent applications for new credit
• Types of credit you have
 
In some states, insurance companies are limited in whether they can use credit-based insurance scores and, if so, to what extent.
 
While influential, credit-based insurance scores are only one factor in a company’s process of determining your premiums. Auto insurance companies, for example, could consider factors such as your location, age, the model and age of your vehicle, and how much you drive.
 
Improving Your Score
The easiest way to improve your credit-based insurance score is to increase your actual credit score. A healthier credit score can lead to lower premiums and put money back into your pockets. In addition, the higher your credit score, the better terms you will receive on loans and credit cards. As such, having a good credit score is helpful not only for the present, but also for your financial future.
 
Some steps that you should consider taking to improve your credit score include:
 
• Be punctual—Paying your bills on time is a key factor in maintaining or improving your credit score.
• Pay it back—Reducing the amount of overall debt that you have is a good way of improving your score.
• Keep it open—Paying off a credit card feels great, but even if you don’t owe any money, you should still keep the account open.
• Limit new debt—Keep the amount of applications you make for new credit to a minimum.
• Maintain balance—Having a wide variety of types of credit, such as a mortgage, auto loan, credit card and personal loan can contribute positively to your credit score.

Need help finding affordable insurance?  Give TWFG Spring / The Woodlands a call (281) 466-1310.
0 Comments

    Archives

    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    October 2019
    August 2019
    May 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018

    Categories

    All

    RSS Feed

TWFG Insurance Spring / The Woodlands Logo - insurance in Tomball TX - Spring TX - The Woodlands TX

We welcome the opportunity to earn your business!


Hours

MONDAY - THURS:  9AM - 5PM
FRI: 9AM - 4:30PM

Telephone

(281) 466-1310

Email

[email protected]

Address

23309 Kuykendahl Rd,
​Tomball, TX 77375
​

Car Inurance 
Home Insurance
Boat and RV Insurance
Flood Insurance
​Business Insurance
Life Insurance
​Claims
Quote Forms
Car Insurance
Home Insurance
​Flood Insurance
Our Team
Contact​​
Sitemap
Website Designed  by SLS Digital Consulting
  • HOME
  • INSURANCE SERVICES
    • AUTO
    • HOMEOWNERS
    • FLOOD
    • BOAT & RV
    • LIFE
    • BUSINESS
  • CONTACT
    • OUR TEAM
    • NEWS
    • INSURANCE TERMS
    • TWFG APP
  • SHOP INSURANCE
  • CLAIMS
  • QUICK QUOTES