{"id":345221,"date":"2022-07-04T15:17:53","date_gmt":"2022-07-04T15:17:53","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=345221"},"modified":"2022-07-04T15:17:53","modified_gmt":"2022-07-04T15:17:53","slug":"do-life-insurance-companies-run-your-credit","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=345221","title":{"rendered":"Will a life insurance company run your credit?"},"content":{"rendered":"

Credit information factors into most major financial decisions, like renting an apartment, taking out a mortgage, or buying a new car. But does it impact your ability to get a life insurance policy?<\/p>\n

If your credit is less-than-stellar, you may worry about your ability to protect your family with life insurance. The good news is that life insurance companies typically make a soft inquiry into your credit, but poor credit does not preclude you from receiving great coverage. Instead, insurance companies look at key areas of your credit report and along with many other factors form their own insurance scores, which they can use to help determine eligibility and rates.<\/p>\n

What is an insurance score?<\/h2>\n

An insurance score is a value calculated by insurance companies using information that in part comes from your credit report. Your insurance score fluctuates over time based on changes in your circumstances. Insurance companies use this information in conjunction with other factors like demographic and health history, to calculate the risk of insuring an individual.<\/p>\n

How does an insurance score work?<\/h2>\n

Insurance scores are dynamic, and each insurer calculates them differently. The degree to which they impact your premiums also varies across providers and plans.<\/p>\n

Fortunately, you can improve your score through positive financial choices, like catching up on overdue payments, paying new bills on time, and reducing your overall debt.<\/p>\n

Do life insurance quotes affect your credit score?<\/h2>\n

As you\u2019re shopping around for the life insurance policy that suits your needs and circumstances, you may seek out several life insurance quotes. When you request a quote, insurers perform a soft inquiry into your credit history. However, you don\u2019t have to worry about multiple quotes chipping away at your credit score. These soft inquiries have no impact on your credit. It\u2019s hard inquiries, like applying for a new line of credit or loan, that could ding your score.<\/p>\n

What aspects of your credit report could impact your life insurance rates?<\/h2>\n

While your credit score doesn\u2019t directly influence your rates, insurers consider various aspects of your credit report to calculate your insurance score, which does affect premiums. Insurance providers\u2019 priorities vary, but some areas they frequently focus on include the following:<\/p>\n