ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Car insurance is no different. When you apply for car insurance, the insurance company scrutinises your credit history and driving record before computing your motor insurance premiums. Your credit score is one of the major determinants of your capacity to pay for your insurance premiums.

Detailed explanation-2: -In most states, insurers can use your credit-based insurance score to determine your premiums.

Detailed explanation-3: -The higher the credit score, the lower the premium on an insurance policy for the car. Insurance companies offer a lower premium to the car-owners having good credit scores compared to the individuals having poor or no credit scores.

Detailed explanation-4: -The list includes creditor names, account numbers, balances, payment history and account status (including whether or not the account is past due). Public records: Bankruptcies. Recent inquiries: Who has recently asked to view your credit report and when.

Detailed explanation-5: -Your payment history accounts for 35% of your score. This shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills, and how recently payments have been missed.