Top Ten Ways to Improve Insurance Scores

A credit-based insurance score includes payment history; bankruptcy, foreclosures and collection activity; length of credit history; mount of outstanding debt in relation to credit limits; types of credit in use (mortgages, installment loans, etc.) and number of new applications for credit. Help your clients improve their insurance score by sharing these tips:

1. Pay bills on time.
2. Manage outstanding account balances, maintaining them at least 75% below available credit.
3. Avoid excessive inquiries to credit reporting agencies.
4. Limit the number of credit accounts.
5. Review credit reports regularly and take steps to dispute inaccuracies
6. Avoid quick credit fixes—good credit is built over time.
7. Manage debt consolidation, considering how to pay down debt without generating more credit activity.
8. Limit the amount of new debt—too many loans or credit accounts opened in a short amount of time can negatively affect credit rating
9. Establish credit now—a longer credit history creates a positive impact on a score.
10. Work with creditors, resolving outstanding balances before they are turned over to a debt collector.