Credit scores are an important measure of your financial health. It should be no surprise, then, that they are used to determine risk in everything from obtaining a mortgage to buying auto insurance. In fact, improving your credit score is one of the best things you can do to lower your car insurance rate. Following are some ways to improve your credit scores:
Some credit cards routinely scan the items you buy and where you shop as part of their risk algorithms, with special attention to items that indicate future problems. For example, you might want to think twice before buying retread tires, because it’s likely to cost more in the long run and your credit card rates might go up and take those insurance fees with them.
Ever wonder what the number one cause of high credit card fees and car insurance increases have in common? Late fees. Watch out for those due dates. Better yet, sign up for automatic payments to keep rates low and credit scores high.
Check Your Score
Verify the accuracy of information in your credit report at least once per year.
Visit www.annualcreditreport.com, or call 877.322.8228. These are the only
authorized sources under federal law.