Saturday, July 28, 2007

Your Poor FICO Score can Cost You, Even If Debt Free!

It is discussed in this article on Yahoo Finance that your FICO score can result in increased premiums for auto insurance.

Furthermore, the Supreme Court recently ruled that the insurance companies aren't required to notify you that your poor FICO score has resulted in a higher premium charge.

The Yahoo Finance article goes on to give some standard advice, such as paying your bills on time, and not canceling credit cards that you've held for awhile.

This is all good advice. Additionally, you should obtain your credit scores annually at this site and not the one that advertises on TV as being "FREE". You can get one report from each of the 3 major agencies each year that truly is free. And you can space these reports out every 4 months as I previously discussed so you can more rapidly detect errors. And if you've never checked your credit report, you may find some surprises -- such as incorrect information that can be corrected.

No, your FICO scores are not free. But following good practices and correcting erroneous credit reports can only help your score.