A lot of people don’t know that your insurance company uses credit-based scores to determine how much you pay for insurance.
There are several different companies that create credit-based insurance score reports for insurers to use. FICO looks at five general areas it believes will best determine how you manage risk. This is the breakdown of how it calculates your credit-based insurance score:
TIP: If you are making good progress on raising your credit score, here is a tip to save you some money… Call your insurance company or agent and explain that your credit score has improved and inquire what savings they can offer on your current policy.
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