Yikes. Those student loans and credit cards have not been good to you, have they? But what in the world do they have to do with buying a house? Reputation, my dear Watson. Reputation.
You see, home insurance companies (especially if you’re a first-time home buyer) look for sources that can vouch for you to say, “Hey. This person is dependable. This person pays their bills on time. This person is reasonable and responsible with their money.” One of the sources they use is your credit.
Adulting is hard. Get insurance quotes live in chat.Why does credit score matter to home insurance?
Unfortunately, most home insurance carriers only look at the number on the report. They don’t necessarily see the bad financial year you had or how much you’re working hard to bounce back. They just see your past record. And they see a person who could be a risk to insure.
So, how are you supposed to get affordable home insurance with poor credit?
Well, it can really help to improve your credit score.
If you want to improve your score, you can either:
- Get a free, full rundown of your credit report (You can get one a year from Equifax, TransUnion, and Experian),
- Pay off your bills and pay them on time (or ahead of time, if you can swing it)
- And try to pay your debts off.
Also, make sure you shop around for the home insurance you need. The ways that certain carriers assess risk vary from company to company. So, just because one company said no doesn’t mean that they all will.
If you’re too busy improving your score to get quotes from different insurance companies, leave it to us. Click on that chat button in the bottom right-hand corner and say, “Hey, I need help getting home insurance.” We’ll get you over to an expert who knows exactly how to help you out.