Credit Scores Impact Health Insurance Premiums

As we through this blog “solvefinancewithca.com” we have gone through many articles about the importance of credit score in our life. On top of this, Times of India reports on the relationship between credit score and health insurance premium in India. Through this article, Times of India News states that insurance companies offer good discounts on health insurance premiums to individuals with a good credit score. Are . Because as we saw in our personal finance series, a good credit score makes us more reliable in the eyes of insurance companies than others.

What’s a good credit score, and why is it important?

A good credit score brings many advantages that will let you enjoy perks and benefits. Major credit bureaus such as Experian calculate credit scores for Indian citizens. Factors such as payment history, credit exposure, credit type and duration etc., are checked while evaluating your credit scores. The scores range between 300-900. A credit score of 850 and above is considered to be the best credit score.

Now let’s take a look at what a high credit score can get you-

You will get the best offers on loans and credit cards
When you have a good credit score, you don’t need to scout for offers, in fact, great offers will come to you. Your credit score can also fetch you better interest rates on bank loans. This means, you will be able to clear off your debt sooner, and you can save money for other expenses.

Quick loan and credit card approval

Lenders consider borrowers with good credit scores low-risk; hence, loan and credit card approval is faster than for borrowers with bad credit scores.
Higher limits on credit cards
With lower credit scores, you will get a credit card but with lower limits. A good credit score can get you higher limits on credit cards as your past paybacks reflect that you’ve paid your loans and bills on time without being a defaulter.

with this article we are going to explain that insurance companies use credit scores to assess the risk of insuring individuals.

Those with high credit scores are seen as less of a risk, and therefore more likely to receive discounts on their premiums. However, the article notes that not all insurance companies in India use credit scores to determine premiums.

looking to improve their credit scores, such as paying bills on time and keeping credit card balances low.

having a good credit score can not only lead to discounts on health insurance premiums but can also improve one’s overall financial well-being.

Overall, the article serves as a useful reminder for individuals to pay attention to their credit scores and the potential impact they can have on their finances. By maintaining a good credit score, individuals may be able to save money on health insurance premiums and other financial products.