Credit score: How it affects your eligibility for homeowners insuranceWhen applying for homeowners insurance, your credit score can play a significant role in determining your eligibility. Insurers use credit scores as a factor in assessing your likelihood of filing a claim. It is no secret that clients with a higher credit score are less likely to file a claim, whereas those with a lower score are deemed riskier.
If you have a low credit score, it is likely that you will pay higher premiums or, in some cases, struggle to obtain coverage entirely. The best way to improve your chances of obtaining affordable homeowners insurance is to keep a good credit score. To maintain a good credit score, pay your bills on time, keep your credit utilization low, and avoid applying for new credit frequently.
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