Does FICO Affect Insurance?
Your FICO score does affect your insurance rate, but Dave says you'll pay even more if you go into debt to keep your score up.
QUESTION: Listener wants to know how to keep a FICO credit score after they cut up their credit cards, and how does a low credit score affect your insurance rates? Dave tells him why it’s not such a bargain after the smoke clears.
ANSWER: Your credit score, or FICO score, is an I-love-debt score. You don’t want to worry about keeping it since you have to go into debt to make it high. Also, as far as insurance rates go, you will pay more for insurance, but you would pay even more than that if you went into debt to keep your credit score up and your insurance rates down.