How Does Your Credit Score Affect Your Car Insurance (1)

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How Does Your Credit Score Affect Your Car
Insurance?
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1 Do You Need Good Credit to Buy Car Insurance?

• When it comes to your financial health, one
  of the most important numbers you need to know is
  your credit score. A credit score can have big
  implications for your personal finances,
  particularly with regard to your future car
  insurance ratesbut what is a good credit score
  to buy a car? Read on to learn more about how
  different credit scores can affect your premium
  payments, as well as how you can boost your score
  if its not where you want it to be!

A majority of car insurance companies use
credit-based insurance scores to determine rates,
but not all do. Some go with geographic regions,
personal characteristics or other factors in
determining premiums. For example, if you live in
an area with a higher rate of accidents and
traffic tickets, you may see more significant
jumps in your rates than someone who lives on an
off-the-beaten path somewhere where roads are
less traveled. One of these variables is out of
your controlyour geographybut its possible to
improve both factors through responsibility and
diligence. A clean driving record can help
improve your premium prices while taking
advantage of discounts will also chip away at
costs.
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2 Myths About Good Credit

• A lot of folks seem to think that good credit
  has a direct correlation with being safe or smart
  with money. However, many major studies have
  proven that assumption to be false. One study by
  Experian, for example, found that having a good
  credit score did not equate to being financially
  responsible. In fact, some consumers with high
  scores actually demonstrated financial
  irresponsibility in other areas of their lives.
  Furthering that point is another study done by
  Experian , which found that nearly 1 in 10
  Americans have no idea what their actual FICO
  score is and about 1/3 of those who do know what
  their scores are dont know how it affects them
  when making financial decisions. (And whats
  worse Many people believe there is one credit
  score that everyone sees. Thats also false.)
• Knowing more about your creditand how it
  will play into certain financial situationscan
  help you make smarter choices. Whether youre
  trying to buy a house, get approved for loans, or
  buy car insurance (or any combination thereof),
  understanding your score can help ensure you find
  an option best suited for you. . Whats more
  important than knowing what makes up your total
  number? Knowing why. Well explain

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3 What is a Good Credit Score on Your Car
Insurance Application?

• As its name suggests, your credit utilization
  ratio (or CUR) helps lenders determine whether
  they should approve new lines of credit based on
  their analysis of both recent and overall account
  activity.

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Why is My Credit Score So Important When Buying a
Car?

• Car insurance companies are concerned with
  not only how well you drive, but also how much
  risk you pose to them when it comes to paying for
  your automobile repairs. If they feel like you
  might not be able to afford those repairs, they
  may try and jack up your premium. A low credit
  score may be considered as such a risk factor.
  You can check out some sites like Grand Lux
  Credit that will tell you where you stand with
  your current scores and what improvements can
  help bring down rates. Its also a good idea to
  look into some of those nice new online banking
  apps that offer free on-the-go credit monitoring
  too. The more information you have at your
  fingertips, The better. Good luck!

Because bad credit is risky business (for
both parties involved). The other party wants to
know that if theres an accident and their car
gets totaled, you can actually pay off any
outstanding debt related to it. Bad credit
represents financial instability thinks lack of
savings which could lead someone to default on
loan payments in order to put food on the table
for their family.
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4 Does Having Bad Credit Affects My Rates?

• However, there are tools available to allow
  people with bad credit histories finance cars
  from reputable dealerships using special
  financing techniques without wrecking their
  scores even further.

A lot of factors go into determining how much
you pay for your auto insurance. Your age, zip
code, and occupation all play a role in
determining where you fall on an auto insurers
price scale. Your gender also plays a role You
might be familiar with all-female or ladies car
insurance groups that advertise cheap rates
(which they usually arent). And then theres
whether or not you have bad credit which can
cost you up to 40 more for coverage. Luckily,
its possible to get cheap car insurance with bad
credit once you understand how it affects rates
and why some insurers charge higher premiums to
people with poor scores. (As always, check out
Nerd Wallets Best Car Insurance Companies
ranking for recommendations.) With any of these
insurance companies, see if you qualify to save
hundreds by bundling multiple policies together.
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Contact Us

• Address - 13100 Wortham Center Drive, 3RD FL,
  Houston, 77065
• Email - info_at_grandluxcredit.com
• Phone - [phone]
• Website - https//grandluxcredit.com
• Blog - https//grandluxcredit.com/how-does-your-c
  redit-score-affect-your-car-insurance/contact