Think Your Credit Score Doesn’t Matter? Think Again
Some of us agonize over our credit score. We join free services like Credit Karma and watch our credit score rise and fall as we struggle through the maze of life. We also find out that our credit score may vary significantly depending upon the credit reporting service grading you. Or is that just me?
Unfortunately, I discovered fairly late in my life just how important a credit score is. It affects everything from being approved for a home or car loan, to being denied credit cards, or an apartment and believe it or not paying an exorbitant amount for car insurance.
How much is too much? WalletHub has revealed what I'm guessing is an open secret in the insurance industry; your credit score can raise your car insurance rates astronomically. On average, people with no, or bad credit end up paying 65% more than people with good credit. A 65% penalty!
What about here in South Dakota? Iffy credit can force you to pay 57% more for car insurance, than someone who's been mindful of their credit score.
Another twist in this story is that depending on which insurance company you go with or rather, which company chooses to insure you; your savings or penalty can vary greatly. Some insurance companies are more transparent about this than others.
Even though I'm acutely aware of how much our credit scores matter, I still found this report eye-opening. If you could use information on a somewhat complicated subject, I highly encourage you to read the full WalletHub Car Insurance By Credit Score report.