Credit Score Controlling Insurance Rates

Tuesday, December 18th, 2012

When dealing with insurance, there are a lot of factors that determine just how much your premiums are. Anything from your gender and age, to your driving record or criminal record. But there is actually another factor that a lot of people might not know about. Your credit score can play a huge role in determining just how much you have to pay for insurance.

Credit Score Controlling Insurance Rates is not a very well known fact, but it has become one of the norms in recent years. Insurance companies will now look at your credit history and if you have bad credit, you can expect to pay much higher premiums.

As can be expected, many people do not agree with this change in policy. Many people will argue that your credit score has nothing to do with whether or not you will file a claim on your insurance policy. One has nothing to do with the other.

While it is an undesired policy, it has also become a standard in the insurance industry, so as much as we may not like it, it is here to stay. That means you should be aware of your credit score when attempting to get insurance. If you have a bad credit score you should make plans for paying higher premiums.

With Credit Score Controlling Insurance Rates you should also be aware of how your insurance company determines your premiums based on that credit score. There are several agencies in the United States that will create your credit report. Insurance companies look at all of these, since those agencies use different methods and often come to different conclusions.

They will look at various things, such as pending bills, loans, bankruptcy and more. When factored all together you get your credit score, which is what your insurance company will look at.

Even though this policy is more than a little dubious, there is a bright side to it. A lot of people who are sick of having to pay high premiums are actually taking better care of their finances in an attempt to raise their credit score so that they do not have to pay as much.

So in some kind of twisted way it can be a bit beneficial since it gives more incentive to be more careful with your money. That does not make it any better, but it is something you can look at to make things a little easier.

However, if you do not want to look on the bright side and do not want to deal with your Credit Score Controlling Insurance Rates, all is not lost. There are still some insurance companies out there who have not yet adopted this policy. They are few and far between, but they do exist.

If you do not want to be penalized for your financial troubles in these difficult times, then looking into these companies that do not have this policy is probably your best bet. You should also recommend them to friends and family if you are happy with their service, since if they get strong business they may be less inclined to adopt this policy.

Best Interest Rates

Saturday, October 20th, 2012

No matter where you are in your financial life, getting a handle on your finances can be the best thing you do. One of the first things many people like to do to get a handle on their finances is to start saving more. There are several methods to save and all of them involve finding the best interest rates.

If you choose to just open a passbook savings account at your local bank or credit union or if you prefer to invest in a short or long term certificate of deposit (CD) you should know just what the best interest rates are so you know where to invest your money.

When it comes to opening a CD or savings account, the interest rate is very important, but it isn’t the only thing you should consider.

Especially with a CD, you need to be careful. You see with a cd you have to keep the money in the account for the full length of the term. If you take the money out early you will lose a big chunk of the interest you have earned, maybe all the interest you have earned.

That will not help you achieve your financial goals. Instead take your goals into consideration prior to opening your account.

If you know that you have something you will need the money for in one year, you don’t want to put your money into a cd that has a term of 5 years.

Sounds obvious, I know, but many people get so focused on the amount of the interest rate that they overlook this very important point.

If you are opening a savings account, you have some things to consider as well. While most savings accounts will offer you a lot more flexibility in getting to your money, you still may have some restrictions.

Many savings accounts limit the number of withdrawals you can have in a month. If you go over that amount you will be charged a fee.

Also remember that some banks and credit unions will consider your credit score when you are trying to open an account. If you have a bad credit score you may not even be able to open an account.

Though, you don’t need to freak out. Many banks do not consider this so you should be able to find a bank that will still allow you to open an account with a bad credit score.

With a savings account you will earn less interest than you would with a cd, in most cases, but you can get to your money more easily.

It really just depends on you and your needs as to which type of account will be best for you. Cd’s typically offer a lot higher interest but much less liquidity. Savings accounts will give you more liquidity but you will earn less.

Keep these tips in mind and they will help you find the best interest rates and best type of account for you.

Best Checking Account

Wednesday, October 17th, 2012

When it comes to finding the “best” of anything it is really
more about what is best for you. Keep that in mind when
looking for the best checking account. What is best for you
and what is best for me may be two totally different things
altogether.

You can visit the banks and credit unions in your home town to find the best checking account.
You can get a sheet that shows you what fees you will be
charged for the account. Or, in many cases, you can do this
type of legwork right online.

Most financial institutions will have a website and you can
find most or all of this information out right on their
website.

Find out if they offer debit cards for free as part of your
account. Also find out if they offer online checking. Many
banks will also offer some type of overdraft protection which
is usually tied to another account like a savings account.

Find out what the minimum amount you will need to open the
account as well as any minimum balance requirements you will
need to maintain to keep the account open.

Many free accounts will require you to maintain a minimum
balance, usually around $100. This money cannot be used. If
you use that minimum balance amount you will be charged an
overdraft fee.

This sounds odd, and I think it is, I have never really seen the point in having to keep money in an account without earning interest and that I can’t touch.
It is also nice to keep track of the cost of ordering checks. This won’t be a big expenses but it is something to be aware of.

There are some credit unions that will actually check your credit score before allowing you to open an account. If you have bad credit, you won’t be able to open your account. Keep this in mind especially if you are considering opening an account at a credit union.

Many banks will charge you a small fee if you don’t use your account during a certain time period, say every month. If you know you won’t be using the account very often, check to see what these fees will be and compare them from one bank to the next to find the best possible deal.

Also, make sure you carefully look over all the terms and conditions before you open an account. Banks can be a little on the sneaky side sometimes.

For example, in order to get more fees they will return all the checks on a certain day if there is an overdraft rather than processing as many as possible.

Here is what I mean: let’s say you have 4 checks each for $25. But let’s say you only have a $90 balance in your account. Even though you have $90 which would be enough to cover 3 of the checks, the bank is within it’s rights, and they often do this exact thing, to return all of the checks even though there is enough money to cover at least 3.

Most people would consider that a little sneaky and not terribly ethical but the banks do that type of thing all the time so make sure you fully understand the overdraft policies of any bank or credit union before you open an account.

All of these tips will help you find the best checking account for you and your financial needs.