Understanding Credit and Home Insurance Quotes for Homeowners

Aug. 24, 2009 - PRLog -- Did you know that most insurance companies today will run your credit report when calculating your premium for homeowners insurance? That’s why it’s so important that you understand your credit score and how to improve it.

Below are percentages which tell you how your credit score is made up.  Keep in mind that many lenders are now using a FICO score.

Payment History (35%) - How diligent are you when making payments?  If you pay your bills on time such as your credit cards this helps your score.  

Length of Credit History (15%) - How long have you used a credit card?  The longer you own a credit card the more credit you obtain if you have made your payments on time.  

New Credit (10%) - Do you have a bunch of credit cards you just opened?  Other things that can negatively affect this are the number of loans you are currently making payments on.

Types of Credit Used (10%) - Cars, Houses, Remortgages, Student Loans, etc.

Amounts Owed (30%) - Do not get out of hand with your credit card purchases unless you can pay them off without them affecting necessities in your lifestyle (mortgage, cars, insurances, etc)

Most people know that paying bills on time is very important to keep a good credit score, but understand that is 35% of your score not 100%. Your credit score also consists of length of credit history, amounts owed, new credit and types of credit used.
If you are applying for homeowners insurance, you might want to pay off any credit card balances first. Don't close or open new credit accounts before having your credit score issued. And finally be sure to get a copy of your credit report at least annually to make sure that everything is accurate.

Some companies you can obtain your credit scores from are FreeCreditReport, CreditReport, and Equifax dot com.  The best way to get insurance from a professional is talking to a local agent in your community.  To learn more, visit InsureMyHouse.com at http://www.insuremyhouse.com and find one of the 4,000 exclusive homeowners insurance agents today.

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InsureMyHouse.com provides consumers with an online homeowners insurance agent directory sorted by state and zip code.