debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Consumers may consider debt management plan in light of the fact that their credit past can affect insurance rates
01/23/2010
Many consumers may have seen how much having good credit card debt habits can help maintain a high credit score, especially when it comes to getting loans.
However, insurance can also be affected by a credit score, a practice that Washington Insurance Commissioner Mike Kreidler wants to end. In a recent editorial for the Seattle Times, Kreidler said the insurance industry has used credit histories as a factor in determining rates.
"In today's economy, this extra hit from insurers is especially unfair," Kriedler wrote. "Your premium should be determined the way most people assume it is - by how you drive and how you treat your property."
Kriedler said he has asked state lawmakers to ban the practice in Washington because he views the practice as "unjust and unfairly discriminatory."
Given that insurance companies may look at a person's credit history, those with poor habits may be worried that their premiums could be affected. However, there are ways for consumers to get back on the road to good credit.
For example, some may consider a debt management plan, which can help them reduce interest rates and pay off debt while trying to restart their financial life. Though it could affect their credit score, it may be a better alternative than bankruptcy.
More Debt Management News
