Page 9 - AO 2nd QT 2017 PL

Credit-Based Insurance Score
When it comes to insurance, your credit is seen di erently by insurance companies. A credit-based insurance score looks at some, but not all, factors in your credit history to determine how you are likely to manage your risk exposure.
What kind of informa on goes in to my credit-based insurance scores? There are several di erent companies that create credit-based insurance score reports for insurers to use. FICO looks at ve general areas it believes will best determine how you manage risk. This is
the breakdown of what it considers and how much the informa on generally weighs in guring your credit-based insurance score:
• Payment History (40%)
• Outstanding Debt (30%)
• Credit History Length (15%) • Pursuit of New Credit (10%) • Credit Mix (5%)
As you can see, the percentages for insurance scoring and credit scoring are di erent.
How can you improve your
credit-based insurance score?
Improving your credit-based
insurance score is just like improving
your regular credit score. Make
payments on me. Pay bills, taxes,
and nes/fees as agreed. If you are
behind on payments, catch up and stay current. Keep the balances on your credit cards as low as possible.
Source: NAIC & Investopedia