You might have heard that remodeling, location and safety
devices affect the premium of your home insurance. But, did you know that your
credit score also decides how much you are going to pay in the form of premium?
A lot of home insurance companies from Weston, Florida also consider this
factor.
When assessing the individual risk, most of the
insurers rely on statistics. These insurers have observed that policyholders
who firm more claims are mostly the ones with lower credit scores. This is what
Federal Trade Commission also reported in one of their study.
There are various factors that have a positive impact
on credit-based score, such as low credit usage, no late payments, multiple
credit and bank accounts in good standing, etc. Similarly, there are also
factors that affect credit-based score. Some of these factors include multiple
applications for credit, multiple past-due accounts, bank/credit accounts in
collections, and high use of available credit.
If you are seeking the steps for improvement, you can
begin by having information of credit health. Check the credit report after
four-six months. What else you can do is
limit the hard inquiries into your credit, especially till the score can handle
them. It is also wise to keep the debt levels low. You must also pay the
household bills on a timely basis.
Your insurance advisor can also suggest how to keep the
credit score. If you are searching homeowners insurance in Parkland, Florida, connect
with us for the same. Learn more about our home insurance solutions: floridainsmarketers.com.
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