Auto Insurance and My Credit Report you ask? What does
your credit have to do with
car insurance?
Credit Report usage by auto insurance companies base several assumptions
on your credit report. They are not factual assumption (If you paid your bills last month
isn't going to make you have a wreck) auto insurers instead use a scoring method to
determine the likelihood of a claim.
Credit report scoring is based on past data of all drivers, auto insurance
companies try to guess whether or not someone who didn't pay their bills will have a
wreck.
You may like to know that there are movements in many states that want to disallow
this type of practice .Until then, you are better informed to know you
credit score
See your credit report for
free.
Know what your insurance company will know before you apply. Get Your Free Credit Report! or Click Here For Your Instant Credit Score!
When you get your credit report or credit score and you find out that you rank low as
compared to other people, you may have to price high risk auto insurance quotes. This type of
car insurance is generally more expensive. Answer Financial been really good at finding
the lowest priced auto insurance quotes possible in these circumstances. Sometimes, your
credit won't affect your auto & car insurance rates. It depends on the insurance
company. A very good reason to get as many auto insurance quotes from as
many insurance companies as possible.
Credit Scores - How they
are determined.
Using
statistical information, your credit information is compared to the performance of
consumers with similar profiles to yours.
A credit scoring system awards or subtracts points for various factors in the credit
report to determine the score. The following information is considered:
 personal payment history
amount of money you owe
length of your credit
history
whether you have any new credit
or debt
mix of credit types you use
The credit score predicts the likelihood of certain insurance claims occurring.
This may sound unfair (us included) right now, it is the way that some insurance companies
work. Being informed is the only recourse consumers have.
The best way to review your credit is to order a
Free Credit Report.
This will allow you to see the report that is on file in your name at each of the three
major credit reporting agencies (Equifax, Experian and TransUnion).
You will get a credit score based on the information in each report.
These credit scores will be accompanied by written explanations, detailing the information
used to compute each score.
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