Some insurance companies use credit scoring information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider these factors when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit-based insurance scores.”
Landlords of apartment buildings and potential employers are other types of businesses that may use credit scores as a screening tool.
We would like your feedback on this Personal Finance Frequently Asked Question.
Your donation keeps eXtension growing.Give Now