In general, all the insurance companies utilize credit score in determining the premiums their clients will pay. If you have a good score, you will get a lower insurance quote. Here are some ways you will be able to raise your credit score:
- Pay bills timely: Always pay your bills timely. You can use applications that will alert you when a bill is due.
- Do not miss bill payment: Forgetting to pay a bill is the worst thing you can do for your credit. Paying minimum is better than skipping payments.
- Keep debt to credit ratio low: If you are using credit cards, charge your cards with care. Always try to keep your spending less than one third of the available credit on the credit cards.
- Keep credit cards active: Credit card companies consider a card inactive when the card is not used for a long time (usually more than 6 months). If you have credit cards that you do not need to use, make small purchases every four months and pay it off. This technique will keep your cards active and contribute to your good credit.
If you follow the steps above, your credit score will go up with time. Remember, it takes time to improve credit score. So, be patient and practice all good credit habits. With a higher credit score you will save a significant amount of money in insurance payment.