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.

Financing A Car In A Shaky Economy – Dont Get

Tuesday, November 20th, 2012

Financing A Car In A Shaky Economy – Dont Get Trapped

There is no question that today’s economy could be doing better. However, even in this slump, financing a car probably isn’t quite as hard as you may think. In some ways, car dealers are tightening their purse strings and are more careful about lending money than they were just a few years ago. At the same time, though, their lower sales volume gives them more incentive to help people buy new cars.

But that doesn’t mean that automobile dealerships are the only place to go for financing a car. Big banks are actually not one of the best sources because of the changes they have made. On the other hand, credit unions, regional bank and other local lending institutions are all potential sources for getting car loans.

The good news about the bad economy is that it makes it a buyer’s market. Car dealers are offering various incentives and rebates to help move the inventory off their lots. Some of these incentives include low interest rates, keeping your payments lower, and reducing the overall amount you will spend over the life of your loan.

There is a catch, however. The best deals are only available to those customers with the best credit. Therefore, if you are financing a car, you should check into your credit report and correct any mistakes that may be there. Also, if you haven’t been doing so, start paying all of your bills on time. The longer you do this, the more your credit score will go up.

But don’t just take the best terms you can get at the first dealer you go to. The key is to find the best price on a car first, then go to other dealerships to get the best price and terms. See what they each offer and crunch the numbers to see which ones are best. But don’t stop there! Once you have a firm offer from one dealership, go back to a different dealership and see if they can beat the offer. Remember, they are interested in selling vehicles, and may be willing to go even lower than their previous best offer if they’re afraid you’re going to buy from a competitor.

Now there is another potential trap here, so be careful. You are not only comparing the prices of cars, you are also comparing the terms of the financing. One of the dirty little secrets of car sales is that a large portion of their profits are made on the interest rates they charge. Remember, you do not have to get a car loan through the dealership. You can go to a bank or credit union, and will usually get better rates. However, you also have to take into account any special dealer incentives that good skew the numbers back into their favor.

Another thing you can do when financing a car is to go online to compare offers from various lenders. This is convenient because instead of you going out to visit each potential lender, they come to visit you, although they do it virtually.

Dont Lose HopeThere Is Bad Credit Financing

Friday, November 16th, 2012

There was a time, not all that long ago, when it was fairly simple to receive bad credit home loan financing. One of the major providers of such a service was Countrywide. Unfortunately, they were giving loans to high risk borrowers and eventually Bank of America took over. Countrywide were such big players in the market that their absence makes it more difficult to get bad credit home loan financing today.

But don’t lose hope. It is still possible to get this kind of financing, however it will probably take a bit more time to find what you’re looking for.

One of your first tasks is to figure out if you are really a subprime borrower or not. The quickest way to do this is by checking your credit report and finding out what your credit score is. A lot of people are happily surprised to discover their credit scores are higher than they assumed. Those with a credit score of 620 or better will most likely be able to get a traditional loan as opposed to bad credit home loan financing.

But even if you have a score that’s between 580 and 620, there is still something you can do, and that is raising your credit score. Go over your report and look for any inaccuracies that may be corrected. Also, be sure to pay all of your bills on time and try to bring down the total amount you owe all of your creditors. It may take a few months for your credit score to go up, but it will be worth it if it means getting better terms on your financing.

However, these tips may not be enough to get your score high enough, or it may be well below 580. You still may be able to get bad credit home loan financing, but you should be aware that it will come with a higher cost if you do get a loan. In the eyes of a lender, you are a higher risk, and that risk comes out of your pocket. This usually means paying a higher interest rate, and even one percentage point can add up to thousands of extra dollars over the life of your loan.

A good place to start looking is online. Go to your favorite search engine and search for “bad credit home loan financing” to see what’s out there. The internet also makes it easy to compare quotes from several lenders at the same time. You will have to enter some basic information, and then you will be presented with results from different companies. Being able to do a side by side comparison is convenient and will help you to see which offers fit in best with your current situation.

Finally, there is some good news even if you have to pay high rates for your bad credit home loan financing. If you are able to make all of your payments on time, and can improve your credit score over a period of two years, you can almost always renegotiate the terms of your agreement to make them more favorable to you.