CREDIT BASED INSURANCE SCORE
What does my credit score have to do with my insurance?
In most states, insurance companies use what is called a credit-based insurance score in underwriting decisions and to determine home and auto premiums. The insurance score is calculated based on select credit report characteristics.
What kinds of things affect my insurance score?
- Payment history, bankruptcies, collections
- Amount of outstanding debt
- Length of credit history
- New applications for credit cards
- Types of credit use
- Example: revolving, personal loans
It is important to note that a credit-based insurance score is not the same as a FICO score, nor is it a hard hit on the FICO score.
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