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Michael Emery's Blog

By Michael Emery | Agent in Minneapolis, MN

Bad Credit? Expect To Pay Higher Insurance.


Much has been written about the importance of a high credit score when buying a home. But less known is how insurance companies are increasingly using credit scores to determine rates for homeowners and auto insurance.

If you’ve bounced a few checks or missed credit card payments, insurers might believe that you won’t pay them either. And insurers also believe that those with poor credit are more likely to have accidents which cause the filing of more claims. So if your credit is iffy, count on insurers charging you a premium rate – if they’re willing to insure you at all.

When my auto insurer started using credit checks to determine my rates, the payments went down! So the insurance industry use of credit scores is truly a double edged sword.

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