Another Reason to Keep Those Credit Scores High

Written by CFB Blogger. Posted in Blog

At Client First Bankruptcy we have been touting the importance of American consumers getting and keeping their credit scores as high as possible by paying your bills on time and keeping your charges to less than 30% of your available credit. Here’s another reason. From a recent article in the Chicago Tribune by Kimberly Lankford—your credit scores can determine how much (or how little) you pay for your homeowners insurance in most states. A study by InsuranceQuotes.com showed that “homeowners with poor credit pay 91 percent more for home insurance than people with excellent credit [top 10% of credit-based insurance scores]. Even people with median credit pay 29 percent more than those with excellent credit”. Laura Adams, senior insurance analyst for the online insurance company, stated in the article, “’Insurers have found a direct correlation between a consumer’s credit and the likelihood that he or she will make a home (or auto) claim’” These results vary from state to state. In West Virginia, people with poor credit pay an average of a whopping 208% more than their neighbors with excellent credit. In Virginia, the difference is 186% more; Ohio, 185% and Washington, DC, 182%! However, in California, Maryland and Massachusetts, insurers may NOT use credit information in determining home owners’ insurance rates. In the Florida, although  insurers are allowed to use credit info, the study showed little impact on rates. In The Sunshine State, such risk determinants as location and hurricane-risk factors have a larger effect on costs. As we have propounded in other articles on the Client First Bankruptcy web pages, it is always a good idea to keep those credit scores high. Also, especially with the increase of credit card hacking, check your credit report regularly for errors. For a free annual report from each of the three main credit-reporting agencies (Experian, TransUnion and Equifax), go to www.annualcreditreport.com. The trained and caring professionals at Client First Bankruptcy think that financial education for everyone sounds like a great idea. If you are considering filing Chapter 7 or Chapter 13 bankruptcy due to extreme financial distress, please call us right away. The Client First Bankruptcy attorneys are among the most knowledgeable consumer bankruptcy attorneys in the U.S., representing thousands of clients in consumer bankruptcy matters. Call us toll-free at 800-383-6004 Monday thru Friday from 8:30 a.m.-6:00 p.m. Central Time. For vital information on filing your personal Chapter 7 or Chapter 13 bankruptcy anytime, log onto our easy-to-navigate, interactive website at www.clientfirstbankruptcy.com.