{"id":1355,"date":"2022-09-14T22:51:02","date_gmt":"2022-09-14T22:51:02","guid":{"rendered":"http:\/\/www.prontoinsurance.com\/blog\/?p=1355"},"modified":"2022-09-14T22:51:02","modified_gmt":"2022-09-14T22:51:02","slug":"does-credit-score-affect-car-insurance","status":"publish","type":"post","link":"https:\/\/ecom-mir.prontoinsurance.com\/blog\/does-credit-score-affect-car-insurance\/","title":{"rendered":"Does Credit Score Affect Car Insurance?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You probably already know that people pay different <\/span><a href=\"https:\/\/www.prontoinsurance.com\/blog\/why-did-my-car-insurance-go-up\/\"><span style=\"font-weight: 400;\">car insurance rates<\/span><\/a><span style=\"font-weight: 400;\">. Everything from your age to your marital status to your driving history is factored into your car insurance rate. That&#8217;s not all, though.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Far too few people realize that <\/span><a href=\"https:\/\/www.prontoinsurance.com\/blog\/is-650-a-good-credit-score\/\"><span style=\"font-weight: 400;\">insurance companies use credit scores<\/span><\/a><span style=\"font-weight: 400;\"> when deciding on a driver&#8217;s car insurance premiums. Just like the car you drive and your driving record, most <\/span><a href=\"https:\/\/www.prontoinsurance.com\/en\/product\/auto-insurance\"><span style=\"font-weight: 400;\">auto insurance companies<\/span><\/a><span style=\"font-weight: 400;\"> determine rates by using your credit history. Let&#8217;s look a bit deeper in why, and what you can do to improve your FICO score.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Table of Contents<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Why Does Credit Score Affect Your Car Insurance?<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Tips for Improving Your Credit<\/span><\/li>\n<\/ul>\n<h2><\/h2>\n<h2><span style=\"font-weight: 400;\">Why Does Credit Score Affect Your Car Insurance?<\/span><\/h2>\n<p><img loading=\"lazy\" class=\"alignnone size-medium wp-image-1357\" src=\"http:\/\/www.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_572749054-300x200.jpg\" alt=\"Credit Score Affects Your Car Insurance\" width=\"300\" height=\"200\" srcset=\"https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_572749054-300x200.jpg 300w, https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_572749054-768x512.jpg 768w, https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_572749054.jpg 1000w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">A credit score is a number that lenders use to help them decide how financially responsible you are, and how likely it is they will be repaid on time if they give a person a loan or a credit card. The score ranges from 300 to 850. In 2020, <\/span><a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/consumer-credit-review\/\"><span style=\"font-weight: 400;\">the average FICO\u00ae Score<\/span><\/a><span style=\"font-weight: 400;\"> in the U.S. was 710.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">While it may not seem fair, these scores aren\u2019t based on guesses and assumptions. Your credit report is built on your credit history. Some factors that may affect credit scores are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your total debt<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Types of accounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of late payments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Age of accounts<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Credit based insurance scores are based on the idea that if you take out loans you don&#8217;t pay back, you&#8217;re likely to lapse on your car insurance payments as well. If they don&#8217;t get paid, it&#8217;s a problem for everyone! They&#8217;ll drop you as a client and you won&#8217;t have the <\/span><a href=\"https:\/\/www.prontoinsurance.com\/blog\/what-does-full-coverage-car-insurance-cover\/\"><span style=\"font-weight: 400;\">full coverage<\/span><\/a><span style=\"font-weight: 400;\"> you think you do.<\/span><\/p>\n<h2><\/h2>\n<h2><span style=\"font-weight: 400;\">Tips for Improving Your Credit<\/span><\/h2>\n<p><img loading=\"lazy\" class=\"alignnone size-medium wp-image-1358\" src=\"http:\/\/www.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_1915758292-300x200.jpg\" alt=\"Tips for Improving Your Credit\" width=\"300\" height=\"200\" srcset=\"https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_1915758292-300x200.jpg 300w, https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_1915758292-768x512.jpg 768w, https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_1915758292.jpg 1000w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The Federal Trade Commission tells us that your credit score reflects your likelihood to repay debt responsibly. It is based on your past credit history and current credit status. If you want to improve your score, you need to show lenders you can do this.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The goal is to have a favorable debt to income ratio. Use your credit card for emergency purposes only and then make your payments; never lapse on paying what you owe and don&#8217;t rack up debt buying frivolous things you can&#8217;t afford. The same goes for auto loans, your mortgage, and any other debt you may owe. The more you prove you <\/span><i><span style=\"font-weight: 400;\">can<\/span><\/i><span style=\"font-weight: 400;\"> and <\/span><i><span style=\"font-weight: 400;\">will<\/span><\/i><span style=\"font-weight: 400;\"> make payments when someone loans you money, the higher your score will go.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">As tempting as it may be, you don&#8217;t need to constantly look at your number. Checks of your credit can actually bring your score lower. Get a free copy of your credit score once a month. This will help you keep up with your credit and show you where you&#8217;re improving.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you <\/span><a href=\"https:\/\/www.prontoinsurance.com\/en\/product\/auto-insurance\"><span style=\"font-weight: 400;\">need car insurance<\/span><\/a><span style=\"font-weight: 400;\"> and your credit score is lower than you would like it to be, Pronto Insurance can help. We offer many <\/span><a href=\"https:\/\/www.prontoinsurance.com\/blog\/how-much-is-car-insurance-in-texas\/\"><span style=\"font-weight: 400;\">low-cost car insurance policies in Illinois<\/span><\/a><span style=\"font-weight: 400;\"> so you don&#8217;t have to choose whether or not to pay your bills. Remember, the more bills you pay- the higher your score goes!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You probably already know that people pay different car insurance rates. Everything from your age to your marital status to your driving history is factored into your car insurance rate. That&#8217;s not all, though. &nbsp; Far too few people realize that insurance companies use credit scores when deciding on a driver&#8217;s car insurance premiums. Just &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/ecom-mir.prontoinsurance.com\/blog\/does-credit-score-affect-car-insurance\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Does Credit Score Affect Car Insurance?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":1356,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[26],"tags":[],"jetpack_featured_media_url":"https:\/\/ecom-mir.prontoinsurance.com\/blog\/wp-content\/uploads\/2022\/09\/shutterstock_626435909.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does Credit Score Affect Car Insurance in Illinois?<\/title>\n<meta name=\"description\" content=\"Does credit score affect car insurance? 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