You, as THE Insured become a significant piece of the puzzle when it comes to packaging the best in products and pricing for your insurance coverage. Many people don’t realize the depth of impact of a credit score on insurance pricing. Unfortunately, they do impact more than just credit cards, business loans, or home mortgages. A representation of payment history, your credit score is a photo shot of your past and present attitude toward and ability to meet financial commitments. It is easy to understand why insurance companies are standing in the same line as other institutions; eager to determine how healthy a risk you are to their company!
As a primer for you, rates and fees are all adjusted up or down, based on your credit score; it is worthy of your every effort to protect and ensure you get the best.
- Home Mortgages and Rental Agreements
Needing to know they won’t be caught holding the bag, so to speak, if you should default on a home mortgage or a management company having to “eat” broken rental agreements, the credit score will represent one of two major actions by mortgage and rental management companies: (a) denial of your request, or b) an increase in interest rates or deposits that will defray potential loss.
- Automobiles and Motor Homes
Known to be the second largest purchase made by Americans, it is seldom they buy automobiles or motor homes without financing them. Again… your credit score will determine both the amount you will be allowed to borrow and the interest rate you will be expected to pay for the privilege.
- Career Opportunities
This is probably where you are going to raise your eyebrows, asking, “How can something like a credit score affect my entire life?” The long and short of it is that employers also look at how responsible you will be in managing any aspect of the success of their company. In larger corporations, promotions are even considered – or not – based on how high or mediocre your credit score is reported.
- Basic Utility Services
Here we are again… something so basic and necessary one MIGHT think these services should not or could not possibly be impacted by your credit score. I mean – we NEED these things! Well, I can assure you the good old credit score assessment will be used by these companies before they initiate services – paying more in the way of deposits and frequently having NO allowance for late pays.
I trust this was an eye-opener! As your trusted insurance agent, it is important to me that I get the best possible price and product – however, I do have to have your help in making that happen just by taking the most responsible position possible in managing your credit score.