Want Cheaper Car Insurance? Boost Your Credit Score By Floyd Arthur (PPT) http://carmoongroup.com

1. Want Cheaper Car
Insurance? Boost Your Credit
Score
By Floyd Arthur

2. Few people who are
shopping for cheaper car
insurance think about how
their credit

3. score may impact their rates.
However, in most parts of the
United States*, insurance

4. companies use your credit
score to help them determine
how much to charge. Other

5. factors, such as claims
history, driving record, the
type of car insured and age
are

6. factored in as well.

7. What is A Credit Score?

8. A credit score is a number
between 300 and 850 that is
used by consumer lending

9. companies to measure a
person’s financial fitness and
ability to repay debts. The
most

10. commonly used measure is
known as a FICO score,
which was originally
developed by

11. Fair, Issac and Company in
1956. It is based on a number
of factors, including length of

12. credit history, income-to-
debt-ratio and payment
history.

13. A high credit score shows
lenders that you are likely to
repay loans on time. Thus, it
is

14. easier to get loans and low
interest rates if you have a
good credit score. In general,

15. FICO scores correlate with
the following ratings scale:

16. * 750 and up -- Excellent

17. * 700-749 -- Good

18. * 650-699 -- Fair

19. * 600-649 -- Poor

20. * Below 600 -- Very poor

21. A higher credit score may
also earn you cheaper car
insurance rates.

22. Why A Good Credit Score
Can Mean Cheaper Car
Insurance

23. When an insurance company
issues you a car insurance
policy, it determines your

24. premiums based on its
degree of risk: that is, how
likely you are to make a
claim. In

25. general, customers who pose
a low risk to the company get
cheaper car insurance.

26. Historically, insurers used
factors such as how long a
person had been driving, his
age,

27. his driving record and his
claims history to determine
risk. But over the last decade,

28. credit scores have been
added to the mix.

29. Here’s why.

30. In 2003, researchers at the
University of Texas
McCombs School of Business
did

31. a study comparing the
amount consumers cost
insurers to their credit scores.
They

32. looked at about 175,000
policies and determined that
the average “loss per policy”
(the

33. amount each customer cost
an insurer) was $695.

34. But for customers with the
lowest credit scores (the
bottom 10 percent) that
amount was

35. $918. By contrast, those with
the highest credit scores cost
insurers a mere $558.

36. Although credit scores were
considered by insurance
companies prior to the
University

37. of Texas study, they have
taken on greater importance
in the years since. In fact,
many

38. insurance companies have
developed their own credit
scoring systems, which are

39. presumably more predictive
than FICO scores.

40. A Path to Cheaper Car
Insurance?

41. Although there is little you
can do to quickly repair
broken credit or boost a low
credit

42. score, dealing responsibly
with existing debt can help.
Some suggestions from
experts include:

43. * Get a copy of your credit
report. Every consumer can
request a free copy of his
credit

44. report every 12 months by
visiting Annual Credit
Report.com

45. * Review your credit report
for errors and report any
discrepancies or disputes
immediately

46. * Reduce the amount you
owe.

47. * Pay bills on time. Whenever
possible, set up automatic
payments through your bank
or through the lender.

48. * Use credit cards wisely. Pay
down balances rather than
transferring them between
cards,

49. and limit the number of cards
you have.

50. * Be aware that paying off a
delinquent debt will not
remove it from your credit
report. It

51. will stay there for seven
years. However, it’s impact
on your score will diminish if
you pay

52. your existing debts on
time.

53. Having good credit is
important to your financial
health, and can be a big help
when it

54. comes to finding cheaper car
insurance rates. But it’s also
important to have an

55. insurance agent you can
trust. We at Carmoon offer
you a wide array of options
at prices

56. you can afford, and we work
with you to find the best
solution to fit your needs.

57. Give us a call today at 516-
292-3780 to set up an
appointment for your
insurance

58. review. We’re here every
weekday from 9 a.m. to 6
p.m. Or if you prefer, request
a free

59. consultation online now, and
we’ll get back to you as soon
as we can.

60. *Critics claim that this
practice unfairly
discriminates against the
poor and ethnic

61. minorities. For this reason,
the practice is illegal in
California, Hawaii and
Massachusetts.

62. Visit
www.Carmoongroup.com
Now!