What is credit scoring?
A credit score is a snapshot of your cred at one point in time. The credit information contained in the report is put through a mathematical formul that assigns weithg to the various factors and summarizes your credit information in a 3 digit number ranging from zero to 999. Generally, the higher the number the more financially responsible is the consumer.
How is the credit scoring used?
If your insurance company relies on credit scoring they may use it in 2 ways:
Underwriting- Deciding whether to issue you a new policy or to renew your existing policy
Rating- Deciding waht price to charge your for your insurance by placing you in a specific rating tier.
What affects a credit score?
bankruptcy, collection, foreclosure
Number and frequency of late payments
Homeownership- whether you own or rent
Outstanding debt
Know your credit History
There is a good chance your current or prospective insurance company is looking at your credit. Therefore it is a good idea to review your credit history to make sure it is accurate . You can obtain a free copy of your credit report at AnnualCreditReport.com
In the state of Kentucky, credit scoring is not currently prohibited as a criteria for underwriting or rating.
Kentucky auto insurance
Credit Score
Dick Watts Insurance
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