Your credit score affects everything – from the interest rate you pay for a new car to the ability to get a credit account at your favorite department store. Typically, the better your credit score, the less money you’ll pay in interest. If your credit score tanks, you may find yourself denied or paying double-digit interest rates on everything.
Your credit score can also affect what you pay for insurance. The credit score that you’re used to – the one that can deny a mortgage or credit cards – isn’t the same one used by insurance companies, but it is a factor. Your insurance company uses insurance credit scores instead. Understanding what they are and why they matter could save you a lot of money on your homeowners or auto insurance policies.