There are actually many, many variations of a person’s credit score besides a straight up FICO score, there are scores for insurance rates, scores for specific industries such as utilities and car loans, scores used by landlords, scores that predict the likelihood of a upcoming bankruptcy, and more. Insurance-premium scores look at the information on your credit report as well as your history of wrecks and insurance claims. If your traditional credit score goes up or down, your insurance score will move up or down in a similar fashion. Factors will help reduce your insurance premiums: a long-established credit history; numerous open accounts in good standing, no late payments or past-due accounts and low use of available credit. On the flip slide, these credit factors may increase your premiums, Progressive says: accounts in collection, numerous past-due payments, high use of available credit and numerous recent applications for credit.
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