Okay, you've got a laptop and iPad for your lectures, a futon for the dorm room, and snacks (nutritious, of course) for late-night studying. Everything's set as you embark on your college journey. But hold on—you might be forgetting something. Although it may not seem like a top priority right now, insurance is a concern all college students need to think about. Having the right type of automobile, renters, and health insurance can provide vital protection during years when you cannot afford any major financial setbacks.
Insurance and Credit Score
Auto and homeowner’s insurance companies may use consumer credit information in deciding whether to issue or renew policies. Although companies cannot use credit information as the sole reason to refuse an application, cancel a new insurance policy in its first 60 days of coverage or decline the renewal an existing policy, insurers may use this information as one of the criteria they consider as part of the underwriting process.
Pay monthly credit card bills on time
If you have missed payments, get current and stay current
Maintain a low credit card balance. Don’t max accounts out
Avoid signing up for new credit cards that you don’t need
Under federal law, an insurance company must tell you if it takes an “adverse action”—not offering a policy, charging a higher rate, etc.—against you due to your credit history. You will be entitled to receive a free copy of your credit report from the credit bureau—the company used to obtain your information.