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  • Aarthi Ram

How does your Credit affect your Insurance Rates

Updated: Aug 4, 2020

Not only does having good credit help when you’re looking to buy your own home or a new car, but it also can help you get cheaper insurance premiums.

The first step in determining whether you need to build up your credit, is to take a look at your credit report. You can receive a free credit report every year through Equifax, Experian, or TransUnion. This report will contain your name, address, Social Security number and credit payment history. Scores range from 300 to 850 with 700 generally considered to be a good score.

The most important thing when it comes to building up a good credit score is to pay all your bills on time and keep your debt at a manageable level. If you don’t have any credit, you should consider building up some. Keep in mind that most insurers like to see some sort of credit history. Good credit looks better than no credit!

Try following these three key points to quickly acquire a good credit score:

Don't run your balance up to high

Try to keep the amount on the lower side

Make your payments on time

When choosing a credit card that’s best for you and your credit score, make sure to read through the terms and conditions associated with the card. Look at the annual fees, annual percentage rates, and repayment requirements to find the card that best suits you.

Overall, keeping up with good credit is exceedingly important in order to keep your insurance rates low. Keep in mind that insurers will look at your credit history, meaning that any deletions/changes will always remain on your record.

If you have any questions, please give us a call at (480) 535-5709!


Charlotte Burr, AZ Insurance Team owner, speaks about the importance of maintaining good credit.


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