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Online credit checks for renters insurance provide insurance companies with the information they need to offer coverage. As a prospective renter, you need to obtain this coverage yourself. After all, most landlords require that you attain renters insurance. The process of securing that coverage involves an online credit check. Read on as we highlight the most important things to know about an online credit check for renters insurance.
You Can Check Your Credit Before Applying
Know that you can check your credit score online before you apply for renters insurance. Perform your own credit check so that there are no surprises as you shop around for insurance. You should also check your credit before your landlord performs a background check on renters. If there are any issues or discrepancies on your report, file for corrections with the credit bureaus before applying for any insurance policies. The information you have access to is the same that the insurance company will examine, so it is smart to know what they will be seeing. Before the renters insurance company runs its inquiry, check your credit for yourself.
Your Credit Affects Your Premium
Like any other insurance plan, your credit score will affect the premium you pay for renters insurance. Research has shown that people with lower credit are more likely to file a claim through their insurance. This means that a renters insurance company will charge you a higher premium if your credit falls on the lower end of their spectrum. While different companies prioritize different items on your credit report, they generally look at your payment and credit history. They may also examine any outstanding debt. When shopping for renters insurance, know that your credit affects your premium.
Insurance Inquiries Do Not Affect Your Credit
The type of inquires that renters insurance companies conduct have no impact on your credit score. This credit check is known as a soft inquiry and does not show up on your credit report. Unlike hard inquiries, soft inquiries are not connected to any applications for new credit. Do not worry about your credit score being affected as you shop around for renters insurance coverage. It is understood that your credit will be checked multiple times during the process, so all insurance inquiries are categorized at soft. Shop for renters insurance companies with confidence in knowing that these inquiries will not affect your credit.
Insurance Companies Have Different Credit Standards
Before applying for renters insurance, know the credit standards each company has. One renters insurance company may consider a 630 a satisfactory credit score, while another might consider it poor. Companies also examine more than just the score. Everything that comes up in their inquiry informs the plan they offer you. Since there is a correlation between low credit and insurance filings, a poor credit report may result in a denial of coverage. Because all insurance companies have different credit standards, do some research before having a renters insurance company run your credit.
Bad Credit Does Not Disqualify You
Before deciding to go without renters insurance, know that bad credit does not disqualify you. You do have a few options if your credit is less than great. The renters insurance company may offer you a higher premium to minimize their risk. Additionally, you have the choice to opt for a higher deductible. Doing this allows you to get the coverage you need without having to pay a pricey premium. If you are concerned about the cost of renters insurance, it is a good idea to take advantage of this option. If an online credit check for renters insurance is going to reveal a poor report, know that bad credit will not disqualify you from getting insured.
As you shop around for renters insurance, keep in mind that an inquiry will be made into your credit history. Check your credit before you apply because your credit score has an impact on the premium you pay. The credit checks conducted by insurance companies have no effect on your score, so do not worry about applying to multiple plans. Know the credit standards that companies have before committing to a plan. Even though bad credit will not disqualify you, it will impact the premium or deductible that you pay. These are the most important things to know about an online credit check for renters insurance.
