When it comes to insurance costs, your credit record can be just as important as your driving record

When it comes to insurance costs, your credit record can be just as important as your driving record
As a smart consumer, it should be no surprise to you that
your credit report can affect the interest rate you get on
a car loan. The better your credit score, the better your
rate. But did you know your credit can also influence your
auto and home insurance premiums?

It's called insurance scoring, and it can drive up—or
drive down—your insurance premiums.

Insurance companies believe there is a correlation between
credit history and the likelihood of someone filing a
claim. So now, almost 90% of auto insurance companies, and
an increasing number of home insurers use credit
information to determine your premiums...or if they should
even insure you at all.

What is your insurance score? You can order your insurance
scores any time by clicking here. Your insurance score
takes into account factors such as your outstanding
debt...length of credit history...payment history...and
amount of revolving credit (the credit card balances you
carry over month to month).

You might be thinking: "Hey, this sounds a lot like a
credit score." Well, you're right. The two are very
similar. However, while both insurance and credit scores
look at the same characteristics of your credit report,
insurers place more importance on the factors that show
long-term stability. They place emphasis on how regularly
you pay rather than how much you owe.

Can you improve your score? Keeping your credit healthy can
be a big boost to your insurance score (and your credit
score, of course!). Here are a few quick tips for a stellar
score:

* Limit the number of credit cards you apply for—aim
to apply for only the ones you know you'll need

* Pay your bills on time—sounds simple, but it is a
huge factor in your score

* Be responsible—keep your balances well under your
credit limit

Stay in the driver's seat One of the best ways to ensure
your credit is helping (and not hurting) you is to check it
regularly. By checking your credit report frequently, you
can stay on top of your information easily.

By making a real effort to improve your credit, you could
lower your premiums quite a bit, especially if your credit
wasn't up to par in the past. And that could mean a little
extra money in your pocket every month.

Just keep in mind that your insurance score is only part of
your premium equation. Things like your age, driving record
(for auto insurance and home property value (for home
insurance) might also be factors.

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TransUnion's TrueCredit empowers consumers to manage their
credit health, providing information on credit-related
issues that range from the significance of a credit report
to identity theft protection. TrueCredit's offerings
include educational materials, free monthly newsletters and
online products, including credit reports, credit and
insurance scores, credit monitoring, debt management tools
and identity theft insurance services.
http://www.truecredit.com/