Ever heard of an insurance score? Most people haven't. Let me explain what it is and give you some ideas on how to improve this number.
Naturally it has to do with tickets and accidents and unlike the DMV (tickets fall off every year), some companies go back as far as ten years, some seven or five, even as short as three. An insurance score includes: payment history, bankruptcy, foreclosures and collection activity, length of credit history, amount of outstanding debt in relation to credit limits, types of credit in use, and number of new applications for credit.
Your insurance score also has a relation to your credit. The argument being that insurance is a form of credit as the consumer pays a monthly premium and can end up with multiple large bills after proven liable.
Something you do today can follow you for the next five years (or longer) as many of us already know.
With insurance scoring it only goes to show, an individual, as well as the industry, can benefit from everyone driving slower and having compassion for fellow commuters.
Lower premiums are an option but the consumer has to take the initial steps. Remember, insurance companies are pooling risks. That's me, you, and the neighbor: if the rating class we're in has substantial losses we're all in for a rate increase.
Lets slow down a little and pay a more attention to driving instead of the phone or make up or whatever it might be. You could find yourself with a lower premium as a result.
TEN TIPS FOR IMPROVING YOUR INSURANCE SCORE:
- PAY YOUR BILLS ON TIME. Paying your bills on time improves your score.
- MANAGE YOUR OUTSTANDING BALANCES. As a rule of thumb, maintain account balances at least 75% below your available credit.
- AVOID EXCESSIVE INQUIRIES TO YOUR CREDIT REPORT Too many inquiries may negatively impact your score.
- LIMIT THE NUMBER OF CREDIT ACCOUNTS. Your access to excessive unused credit could result in too much debt.
- REVIEW YOUR CREDIT REPORT REGULARLY. Know what is on your credit report and take necessary steps to dispute any inaccuracies.
- AVOID "QUICK" CREDIT FIXES. Good credit is built over time.
- MANAGE YOUR DEBT CONSOLIDATION. Consider how to effectively pay down your debt without generating more credit activity.
- LIMIT THE AMOUNT OF NEW DEBT YOU TAKE ON. Too many new loans or credit accounts opened in a short amount of time can negatively affect your credit rating.
- ESTABLISH CREDIT IF YOU DO NOT HAVE A LONG TRACK RECORD. A longer credit history has a positive impact on your score.
- WORK WITH YOUR CREDITORS. Resolve outstanding balances before they are turned over to a debt collector.
Carson E. Koziol Article Source: http://EzineArticles.com/?expert=Carson_Koziol |
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