How credit scores can affect home insurance premiums
Here's another reason why you want to have a good credit score - it could save you a bundle on your homeowner's insurance.
That's right; many insurance companies now consider creditworthiness as one of the factors that determines your premium price.
Most consumers probably have no idea how much credit plays a factor in what we have to pay for home insurance," said Laura Adams, an insurance industry analyst with insuranceQuotes.com. "And the rate increases that we're seeing (based on this information) are probably much higher than what the average person would guess."
According to a recent study done for insuranceQuotes, a homeowner in Washington with a fair credit score will pay, on average, 42 percent more than someone with excellent credit. That's a potential difference of more than $275 a year.
Don't know what your score is? You'd be smart to find out. And if it's low, see what you can do to boost it. You may already get a credit score from you financial institution or credit card. You can sign up for a free score on a number of websites, including Credit.com, CreditSesame, CreditKarma and WalletHub.