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Should you care about your credit score?

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Mark Blog PhotoThe short answer is, yes. Information in your credit report is used in various ways by potential lenders, landlords, insurance companies and even some employers to make decisions about you. While companies use different sets of factors related to your score to make their decisions, it's safe to say that the higher your score, the better.

For example, credit card companies give a more favorable interest rate and a larger line of credit with a higher score. Insurance companies look at many factors to determine the level of risk associated with each individual they insure. Some factors from your credit report are included in your insurance score, which is used in rating and underwriting. Studies indicate that people with a lower credit score are more likely to have a loss than those with a higher score.

The good news is that you can work towards raising your credit score if it's less than stellar. We can help you get started with our short credit score quiz.

Mark Dannehl, Personal Insurance Consultant