If you are looking for auto insurance rate quotes, you should know that your credit score matters. If you have a better credit score, then your rates will be lower. The credit scores are just part of the equation, but they are important. Whether you are looking for car insurance renewal quotes or arranging a new policy, just keep this in mind.
Insurance Score
Your insurance score is how insurance companies quantify your risk of getting into an accident or otherwise filing a claim. Insurance companies take a lot into consideration when calculating this number. Wait, you didn’t know you had an insurance score? Ok, not many people know about that, but it’s true.
One part of this score is your credit score. Your credit worthiness will influence your insurance score to varying degrees depending on the insurance company. Some will weight it higher than others.
Fear not, you can always work on your credit score. If you are able to fix your credit score, then you will do better next year when you look into car insurance renewal quotes. You can either discuss it with your current company or just go get quotes elsewhere. It would probably be the best idea to get quotes from as many companies as you can.
In the mean time, how can you improve your credit score? Let’s look at a few ways to do this.
Fix Your Credit Score with These Suggestions
Today, there are many people who need help fixing their credit, not just people looking for car insurance. So there are a ton of resources out there. If you decide to get professional help, make sure you go to a reputable organization that will not charge you a lot of money. However, to get you started we will look at a few ways to help. These tips will help you repair your credit, regardless of how bad it is.
You will want to check your credit report and your score. You can do this for free online on some websites. Knowing just where your credit stands is the logical, vital first step for credit repair.
Contact your creditors and make arrangements to make late payments or to pay in installments. This will help you prioritize your bills and avoid paying costly interest fees. Some of your accounts may be flexible on due dates or setting up a payment plan, allowing you to focus on debts that need attention now.
Always document problems that you see on your credit report so you have a log to follow up on. If you compile any negative information from your credit records in one place, you are well-positioned to identify mistakes or cues that identity theft may be an issue. You can actually improve your credit rating in this manner because your credibility is increased.
Don’t forget to learn about debt law. Just because you have not paid a bill doesn’t mean you can be prosecuted for it. Specific laws vary across each state. They cannot harass or threaten you over the phone. Know what rules they need to follow.
Keeping your credit card balance under 30 percent is advisable. Ideally, however, you should try to keep it much lower than that. You will have more money and smaller monthly payments. When the balance becomes higher than this, the payments may be harder to manage and the interest will keep adding up.
When your bills are in the collection agency, try to agree on a payment plan with them. Collections agents will often be ready and willing to help you. Avoiding debt collectors just leads to more debt and aggravated collectors. If you are having a difficult time, let the collector know. This may also result in a lower bill and dismissal of a portion of your debt. Cooperate with creditors and attempt to set up a manageable payment plan. You need to convince your creditors to stop adding penalty fees as long as you’re making a good-faith effort to pay regularly.
The Bottom Line
By applying these methods, you will ensure that your credit is in line. Following these suggestions will allow you to improve your credit starting today. There’s no time like the present!
Remember repairing your credit takes some time. Some things can last 7 years on your credit report unless you take action to fix it. It won’t take that long to improve your score, but start as soon as you can. It will take a thoughtful effort to change your credit score, but you can do it! And when you do, you will see a lot of changes in your financial life, including your car insurance rates.
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