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Ways to Improve your Credit Score for Cheaper Car Insurance

One of the biggest costs of owning and operating a car or truck is paying for car insurance. There are a number of ways to bring the cost down. Older, less expensive vehicles tend to cost less to insure, being a safe driver and having a clean driving record also bring costs down as well as not being a young driver who just got their license. However, there is ways to get cheaper auto insurance for teens. Not many people know that having a high credit score can also lower the costs of your car insurance.

Get a Copy of your Credit Report

Get a copy of your credit report every year and examine it carefully to make sure that the information on there is accurate. Don’t assume that even if you haven’t missed any payments you may have that your credit report will not contain any errors. Many do contain errors, and there have been instances of some people being mistaken for someone else with the same or similar name and having bad marks put on their report. Find any errors and have them corrected. It’s possible to get a free copy of your credit report from www.annualcreditreport.com.

Reduce Your Debt

This can be easier said than done, but one of the best ways to improve your credit score will be to reduce the amount of money you owe. Sit down and take a look at all of your bills and figure out a payment plan that will help you reduce your total amount of debt. Stop using your credit cards. Focus on paying off the credit cards with the highest interest rates first. If you can, make more than the minimum payment due, as this will improve your credit score and help get you cheaper car insurance while you pay off your debt.

Don’t Close Unused Credit Card Accounts

Even if you don’t use your credit cards, don’t have a balance on them, or think you may not need them, keep your unused accounts open. That way you still have a line of credit available. Your score will improve because even if you do not have a balance, you are demonstrating that you can be responsible with credit. Additionally, the older accounts you have the better. So if you must close an account, make sure to close your newest ones first and your oldest ones last.

Always Pay Your Bills on Time

Late payments have the biggest negative effect on your credit score. By paying your bills on time, you demonstrate that you are responsible. Insurance companies will see this and apply it to what kind of a driver you are. If you are responsible with your money, it stands to reason that you will be a responsible driver as well. We all know that responsible drivers get cheaper insurance rates.

As you can see, your credit score is not only important for larger matters such as getting an auto loan or a mortgage, but it can also have a large impact on the rates you have to pay for your car insurance. By following some of these tips, you should be able to raise your credit score for cheaper car insurance. We all want cheaper car insurance, and we can find these great deals for auto insurance for teens and others.

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