Your Credit Score and Insurance

Having a good credit rating does affect your insurance premium. So, what is the best way to keep a good credit rating? Of course, getting things paid on time is the best way but if you have been behind on something, getting it paid up will keep your credit score from getting worse and possibly your insurance from going higher.

Some people need a way to just start their credit. No credit can be just as detrimental as bad credit. One popular way is to open a credit card account, but do this only to boost your credit. Getting into a credit card cycle of debt is not want you want to do. You should never start a credit card if you don't already keep sufficient funds back in a savings account to cover any emergencies. Get a four to six month emergency fund started first. Also, don't forget those utilities. Paying for your utilities can be a great way to prove your credit worthiness. My husband and I actually used our electric and heat bills as proof of our credit worthiness when buying our first home... and it worked, we got approved!