Trade Finance

The Link Between Your Credit History And Your Insurance Premium

Did you know your credit history and score could have a tremendous impact on your ability to obtain insurance and how much you pay for it? Many consumers are not aware of this link and because of it they are often in for quite a surprise when the time comes to take out a new insurance policy.

Insurance carriers are becomingly increasingly aware that a tendency to pay other bills late may mean that you will pay your insurance premiums late as well. As a result, more and more carriers are opting to run your credit history before providing a quote. In some cases, a poor credit rating may mean you pay more for your insurance while in other cases it could mean you may not be able to obtain insurance at all.

Just how bad does your credit have to be to interfere with your ability to obtain insurance? It really depends on the guidelines used by that individual insurance company; however, in some cases, missing just as few as two credit card payments could mean you might have problems. In some instances, missing just two payments could mean you premium might be doubled.

You are not necessarily exempt from this type of problem even if you?ve been with the company for a long period of time or if you?ve had a good history in terms of losses, either. Some consumers have been rudely surprised to learn their policy has been cancelled due to credit score problems even though they had previously had a long relationship with their insurance carrier.

How can insurance companies do this, you might ask. As previously stated one reason is that many companies feel that you may have an increased tendency to pay your premiums late. Other companies justify the practice on the basis that if you?re irresponsible with money you may also be irresponsible with other aspects of your life. Some statistics serve to back up this theory, indicating the thought that individuals with poor money management skills also handle other areas of their life with less responsibility, such as driving or even taking care of their home.

Of course this doesn?t take into consideration the number of people who have a poor credit score due to the fact they have experienced financial difficulties rather than possess poor money management skills.

Is there anything you can do about this practice? Not really. If you have been with the company for a long period of time, you could try protesting it, but your chances of winning aren?t very good.

Ideally, it?s best to try to get your credit score in shape by running it yourself and making sure there are no errors on there to drag down your score. Then concentrate on raising it by paying down other debts and paying your bills on time. You may have to live with a higher premium for awhile but the good news is that when your credit score starts to rise your insurance premiums should go down.

Joe Kenny writes for the UK personal finance sites http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk

MORE ARTICLES:

Online Store Imports Exotic Silver Jewelry, Exports Well-being
In response to the continuing hardships faced by children in Nepal, Adambha Jewelry now donates 3% of all sales to support education in Nepal. This donation program will continue indefinitely to provide ongoing funding for these efforts.

How to Find Success in the Import Export Business
Take advantage of world politics today and start your own import export business. Are you organized, efficient, and ready to make your future in an opportunity all your own? Import Export Business Opportunities are expanding and there is room for you!In the early nineteen eighties, one of the most popular things in Soviet Russia was American made blue jeans.

Export Factoring - How to Use Trade Finance to Finance your International Sales
Selling your goods internationally can be extremely rewarding and challenging at the same time. When you start exporting goods, you truly open your company to a world of possibilities, including the possibility of big financial rewards. At the same time, you expose yourself to some of the challenges of international commerce.

A Guide To Import And Export Laws
Import and export laws are a combination of various international as well as national laws that are used to control cross border trade of products and services. Different countries impose different import and export laws and regulations that are designed to protect their economic situation and their environment as well as human health.

Developing Your Export Import Business Using Internet - Part I
Since most of the businesses throughout the world have access to the Internet, many astute entrepreneurs and trading companies are using the Internet as one of the primary means for developing their import and export businesses.Already a big slice of global trades are taking place through the Internet.

Imperial Finance & Trading, LLC Appoints Vice President of Credit
Imperial Finance & Trading, LLC, a leader in premium finance for life insurance, announces the appointment of Drew McMullen as vice president of credit. He will oversee the firm's team of financial analysts, analyze and approve individual deals, and monitor the overall asset portfolios. He will also work closely with the financial institutions that provide credit facilities to Imperial.

Beginner's Guide to Importing & Exporting Products
IMPORTATION:

Export/Import of Inuit Eskimo Art Sculpture Containing Whalebone or Ivory
The export of certain Inuit sculpture from Canada to other parts of the world including the United States does have some restrictions. In order to reduce harvesting of marine animals such as whales and walruses, the United States Congress passed the Marine Mammal Protection Act in 1972.

Trade Europe Global: Export Import Trade Leads
With the advent of sophisticated data and communication technologies world has become global village. Export Import has become a very popular solution whether it is for global sourcing requirements or for retail business. Implementation of large scale economic reforms by developing countries has mooted a concept of free markets. This has opened out tremendous opportunities for Export Import activities. The developing countries are offering low cost attractions whether it is raw or finished material or finished good. Need for a Global Trade is well recognized all over the world.