How to Save Money on Your Credit Rating
Indeed, buying something like the best auto insurance policy just because it’s cheap isn’t the best approach to take.
But buying you something that you really value – something like a watch – that you might want to keep in “someday” probably isn’t the greatest way to go about saving.
When you set these things up early, it can actually save you considerable money in the end. For example, the insurance premiums will largely be based on your current driving history. If you have been involved in a few minor accidents, you shouldn’t be charged much. But if you have a few major incidents, you can expect that you will pay much more.
That’s because the insurance company believes that since you have been in more accidents, it’s a greater risk to have you on their books. Also, they like to make sure that any bills you pay are a consequence of your driving.
Taking these facts together will help you build up a rationale for an auto-insurance credit policy that you’d be interested in buying. At this point, again, the money that you’ll save by not buying something similar to one you would like to have can be taken and put towards your mortgage or other debts. Take advantage of that to pay off those old debts and to build up your credit rating with additional sources of money, such as a car payment and even a down payment for a home.
While you may well want to have multiple premiums on a policy to have it easier to budget your means, the fact is that all of those separate charges add up, and they don’t come as much as you’d like to save when you go to renew.
Having your insurance agent compute and re-compute your policy for you is a great idea. This will help you to know where you stand with your insurance company before you renew. It’s free if you want to have a little more time looking around. Do a little research and check with attorneys general about who will advise if you go ahead with a policy switch. You should look for the company’s background at the Insurance Information Center and the number of complaints against the insurance company.
Another reason you may wish to review your credit rating is that the agency may be providing your credit report freely to companies interested and who may require it to evaluate your application for a loan or for employment.
It’s worth noting at this point that all of this should only be applied to your credit report. Yes, that includes the credit score too. A lot of people go and apply online for a loan and go to one of the credit report companies and get all the information about their credit score. When they come back, all their information is set up to say that they have a good credit score – when it’s obvious that they don’t, this can negatively impact their credit report and make it harder to get credit in the future.
You can contact the credit bureau that supplies the information and get a copy of all the information that’s on file. That will kick some of the rubbish out of it – things like rent history, loan history, unpaid bills, etc. The credit report companies now have to put in your name where they say you live, so do you really want someone to know where you live? It might be nice to move, but it’s rarely going to improve your situation and might even make it worse in time. Think about it before you give out any of this information.