Can my credit score affect my insurance rates?


by olen , in category: Banking and Credit , a year ago

Can my credit score affect my insurance rates?

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1 answer

by augustus.ziemann , a year ago


Yes, your credit score can affect your insurance rates. In many countries, including the United States, insurance companies often use credit-based insurance scores to calculate premiums. These scores are based on your credit history and can be used to predict the likelihood of filing a claim. Studies have shown that individuals with lower credit scores tend to have more claims, which leads to higher insurance rates. However, not all countries or insurance companies use credit scores as a factor, so it is important to check with your specific insurance provider to understand their rating criteria.