If you’re looking for an insurance quote to find a less expensive rate on your insurance premium, you may know that the better your credit score, the more likely you’ll be offered more affordable insurance premiums. Your credit score affects what kind of insurance quotes you may receive, but what about the other way around? Does shopping for insurance quotes affect your credit score?
Tip: If you’re looking for ways to save on insurance quotes, start by getting a free quote, a dependable local insurance agent will contact you with the quotes that fit your specific needs. Shopping online for insurance quotes is a fast and easy way to find an insurance policy that fits you.
There are many consumers who are worried that asking for insurance quotes will have a negative affect on their credit scores. The rationale behind this is that insurance agents and companies who are planning to offer you insurance quotes will base those quotes on several factors, including your credit score. So does shopping for insurance quotes lower your credit score?
The answer is no, it does not. To learn why, you should know about the different kinds of inquiries made on credit reports.
Insurance Quotes Inquiries: Hard pull vs. Soft pull
When it comes to credit checks, there are two types of inquiries: “hard pulls” and “soft pulls.” A hard pull refers to credit inquiries for acquiring credit, like from a credit card company or a lender. A soft pull is an inquiry that will review your credit score, much like an agent would to determine an insurance quote.
Soft pulls often aren’t recorded down on your credit report. If they are, the insurance company’s name will be listed on your report, but the inquiry will not lower your credit score.
Credit Scores Affecting Insurance Quotes
It’s no secret that a high credit score is a valuable thing. And while shopping for insurance quotes may not lower your credit score, it is important to know that a good credit score can lower your insurance quotes!
Insurance companies and agents that see a potential client with a high credit score will consider you a low-risk client, someone who pays their bills on time and in full and is responsible. They will then be able to offer you more affordable insurance quotes. Good credit saves you money in many different arenas of your life, including insurance!
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