Credit affect your monthly payment: Many car insurance companies take your credit information into account to deduct the insurance premium that you will have to pay. Therefore, if you are looking for new car insurance, keep in mind that they will review your credit history. Below we explain how and why they do this.
Memorize the picture above, if you have 15 seconds to learn how credit works. It shows the most important elements that make up the number that summarizes the US credit reporting system and decides if you can get approved for a credit card or a loan, your credit rating.
The keys to a great credit score are paying your bills on time, obtaining a mixture of accounts (credit cards and loans), and maintaining those accounts in good standing for several years.
However, have you ever wondered: How can credit work? Do you require a credit file?