What is the definition of Credit Score?

The Credit Score is the score created based on a person's credit history. The credit score is an important consideration for a lot of things and will affect the consumer in various ways. The credit score is looked into when one is applying for a job, for a loan or for a place to rent or buy. It is also one of the considerations when buying insurance and in getting utility service, such as the telephone service.

For businesses, insurance companies review the credit score first before it issues a commercial policy. This is because those who have poor credit scores are mainly businesses with poor financial conditions. The tendency for this kind of company would be to scrimp on safety precautions, which will then lead to accidents and more claims. The same thing is considered for those who want to apply for auto insurance and home insurance. Hence, the credit score is one of the aspects insurance underwriters use to set the premium of insurance products.

The Credit Score is often computed using five areas - current level of debt, types of credit use, payment history, new credit in determining credit risk, as well as the length of credit history.

• Reinstatement
• Registered Principal
• Liquor Liability
• Businessowners Policy (BOP)
• Directors and Officers Liability Insurance