Homeowners with a low credit scores pay more for homeowner’s insurance.
Exactly one year ago, Consolidated Credit reported a disturbing trend…
Homeowners with an average credit score pay 29 percent more than those with sterling credit. And homeowners with poor credit shell out 50 percent more than those with great credit in 37 states including Washington D.C.
Those facts were discovered by the InsuranceQuotes.com, so the website repeated the study for 2015. With the rebounding economy and robust housing market, you might think this disparity between good and bad credit scores would ease a little.
Instead, it’s gotten worse.
While last year’s average among those sampled states was 91 percent, this year InsuranceQuotes concludes, “People with poor credit pay at least twice as much as people with excellent credit in 38 states and Washington, D.C.”
The worst places for a volatile mix of homeowner’s insurance and low credit were West Virginia (202 percent increase for those with bad credit), Washington, D.C., and Ohio (tied at 185 percent) and Montana (179 percent).
“In most states, insurers are putting more emphasis on credit scores this year,” says Laura Adams, insuranceQuotes.com’s senior analyst. “The impact of a poor credit score is higher now than it was last year.”
In total, 29 states plus Washington, D.C., were higher, while only 17 states were lower.
Of course, poor credit can cost you in many ways, from qualifying for a mortgage to raising your car insurance rates. The solution? Read Consolidated Credit’s free advice section, How to Repair Your Credit. For a free debt analysis, call a certified credit counselor at 1-888-294-3130 or complete our online application.