| Everyone should be aware of the fact that your credit | | | | be capitalizing on others misfortune by making rates |
| rating and credit score can impact your ability to | | | | skyrocket as a response to your dropping credit |
| finance a new home or car and affect your ability to | | | | score. |
| get a decent annual percentage rate on a credit card, | | | | The laws and regulations that govern insurance |
| but few realize that the impact of your credit affects | | | | companies are not federally set. Instead, each state |
| much more than just new purchases. About ten years | | | | has its own laws dealing with insurance companies |
| ago, your financial history and ability to pay your bills on | | | | and what information they are permitted to use when |
| time began affecting your homeowners insurance. For | | | | determining your policy premiums. |
| those with bad credit this probably was not much of | | | | Your insurance company has a complex mathematical |
| an issue, as most people with bad credit do not own | | | | procedure they even they likely cannot explain to you, |
| their own home. But more and more car insurance | | | | but it takes into account many factors including your |
| companies are now taking your credit history into | | | | age, gender, marital status, children, the type of car you |
| account when writing your insurance policy. | | | | drive, where you live, your driving record and often |
| This is a pretty controversial subject, and for good | | | | your credit score. This process assigns you a risk level |
| reason. You purchase and maintain car insurance to | | | | to the insurance company, often based on their past |
| be a responsible driver and protect yourself from | | | | experiences as a weighting measure. Your risk factor |
| financial loss. In a troubling economy like we have been | | | | determines your premium amounts, a higher risk |
| experiencing the last few years, more and more | | | | equaling a higher premium rate. |
| people find themselves in situations where they must | | | | Unfortunately, there is not much you can do about this |
| prioritize their bills each month. More than a few of us | | | | whole process other than doing your best to stay on |
| have defaulted on student loans and credit card bills to | | | | top of your debt. Should you find yourself in a situation |
| pay for our homes and vehicles, as well as insurance | | | | where your financial situation changes and you are at |
| on these important aspects of our lives. One would | | | | risk for not being to pay your bills you should seriously |
| think that prioritizing your insurance at the top of the list | | | | considering scaling back wherever possible rather than |
| of your bills would ensure you have insurance, but that | | | | accumulating more debt. Most states require the |
| may not be the case. Some insurance companies are | | | | insurance companies to tell you what factors go into |
| actually dropping clients that have paid regularly | | | | determining your rate, so calling around and finding a |
| because they have dropped the ball on other bills, thus | | | | company that does not use credit in their |
| lowering their credit rating and credit score. Even | | | | determinations may be a viable option of protecting |
| companies that are not dropping their clients may still | | | | yourself as well. |