Credit scores are made after analyzing your credit history. They are used for getting loans, getting a telephone or even buying insurance. It comes into play when your loan is being underwritten. It basically points out your chances of making a claim. It helps insurers in identifying high risk groups. This further determines whether you will be charged a higher or lower premium. Statistics show that people with a poor insurance score make claims more frequently.
To avoid these problems, pay your bills on time. Donít get more credit than you need and always keep some balance on your card. Try to pay off your bills every month. The FCRA requires that the consumer reporting agencies should provide you with a copy of your credit rating.