- Obtain a copy of your credit report from the credit bureau that the insurance company used.
- Check for any errors, such as incorrect or outdated information, and dispute them if necessary.
- Understand the factors affecting your credit score, including payment history, debt-to-credit ratio, length of credit history, new credit, and types of credit used.
2. Contact the insurance company:
- Inquire why they performed a credit check and how it will impact your insurance policy.
- Ask if there are any steps you can take to improve your credit score and potentially lower your insurance premiums.
3. Improve your credit score:
- Pay all bills on time and reduce overall debt whenever possible.
- Keep credit card balances low compared to their limits.
- Avoid opening multiple new lines of credit at once.
- Consider a credit builder loan or become an authorized user on someone else's credit card to establish a positive credit history.
4. Compare insurance quotes:
- Shop around for insurance quotes from multiple companies.
- Some insurers may be less reliant on credit scores or offer more favorable terms to drivers with lower credit scores.
5. Build a good driving record:
- Maintain a clean driving record free of accidents, violations, and DUIs.
- A good driving record can outweigh a lower credit score in the eyes of some insurance companies.
