Does Bad Credit Affect Car Insurance Rates?
Your credit score has a big impact on your life. It can affect things like buying a car, getting a loan, applying for credit lines, or getting a mortgage. What many people don’t know is that the credit score also impacts life insurance premiums. To understand how your credit record can alter rates for life insurance in Millbrook, NY, read on.
Many insurers will review a variety of documents and information when determining your life insurance rate. Among this will be your credit report. They will look at your credit report and see whether or not you have filed for bankruptcy. While, for many people, bankruptcy can be a result of unfortunate events beyond their control, for others it can indicate poor decision-making. It can even be a red flag to insurers that indicate medical problems if bankruptcy has occurred due to medical bills.
What you can do
Since your credit history can affect prices when you buy insurance, it’s wise to check your credit reports and dispute errors. You’re entitled to a free copy of your credit report every year, so take this opportunity to review your report before applying for insurance.
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