Sometimes applying for Life Insurance can slightly affect your Credit Score. Occasionally some companies will use Credit Score as a determining factor in your Premiums. And they will run your Credit Score to find out what it is.
According to Experian "Inquiries" account for only 10% of your Credit Score. And "Excessive" inquiries count against you.
So unless you have had multiple recent inquiries, a single inquiry from an Insurance Company should not affect it too much according to Experian. However, I am a life insurance specialist, not a credit specialist.
Experian, TransUnion, & Equifax all have some good info on their sites about what makes up your score and what can affect it.
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Life insurance typically does not impact your credit score. However, car payments and mortgage payments can have a huge impact on your score if you constantly are late with your payments.
A lower credit score means it will cost you more to borrow money, and over time, that could cost thousands of extra dollars.
Also, if you have TOO MUCH life insurance and are paying quite a bit, it could impact your score.
This question was also answered by Tyler Maddox earlier in the year.
Life insurance should not effect your credit score unless you are borrowing funds to pay your premiums on a larger case. However, a low credit score can affect your premiums when purchasing life insurance. Underwriting your health and lifestyle is just part of the process. Underwriters do look at the financial side of your life as well. They consider your income, occupation, length of employment, assets and yes your credit score. If you wish to get the best premium for your coverage, be sure your credit score is as high as possible. Your health, lifestyle and finances are all considered when purchasing life insurance.
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According to Experian "Inquiries" account for only 10% of your Credit Score. And "Excessive" inquiries count against you.
So unless you have had multiple recent inquiries, a single inquiry from an Insurance Company should not affect it too much according to Experian. However, I am a life insurance specialist, not a credit specialist.
Experian, TransUnion, & Equifax all have some good info on their sites about what makes up your score and what can affect it.
A lower credit score means it will cost you more to borrow money, and over time, that could cost thousands of extra dollars.
Also, if you have TOO MUCH life insurance and are paying quite a bit, it could impact your score.
This question was also answered by Tyler Maddox earlier in the year.