During the times of plenty, with credit freely available, no one thinks twice about the credit scores. Banks and finance companies seem to be throwing money our way so there’s obviously no need to worry. Except, of course, even during good times there are victims who, for one reason or another, cannot find work or lose their jobs. The poor have always struggled to get into the banking system. Credit cards have been a distant dream. Now even the middle class is struggling to make ends meet. In this, the people are finding an unexpected downside to paying off their debts. Credit scores are based on how well you manage your debts. This assumes you keep them. If you pay off all your debts, your score will drop fast. Being frugal is really bad news. So, the first rule of credit card management is to pay off only the accounts with the really high interest rates – usually the store cards. Keep all the others and use them on a regular basis, moving your debt around to show you know what you’re doing.

So who looks at credit scores? The answer is a surprisingly wide number of people. Recruiters and employers check you out to see whether you are responsible with your own money. If they find you short of money, you may be more likely to work hard, pushing for overtime, or you may be more inclined to steal if you have the chance. Landlords look at potential tenants and insurers may be less interested in giving your monthly terms if your track record of installment payments is poor. Remember, these are the people with power over your life and, to an extent, they can do whatever they like. Once you mandate all drivers to carry car insurance, the insurers can do whatever they think necessary to protect their interests. Some link credit information to the ZIP code and refuse comprehensive cover if you have a poor score and live in a bad neighborhood – the risk of a falsified claim for theft or total loss through fire while parked on the street is considered higher when money is tight.

In fact, there are one or two insurers who don’t look at credit scores, but they are hard to find. The best first step is to ensure your credit history is accurate. Recent surveys have fund that the credit bureaus are unreliable and frequently misrecord information. You have a statutory right to a free copy of your history from each of the main credit bureaus. If you find an error, you can insist it is corrected. Do not be taken in by any of the websites offering to manage your credit scores for a fee. This is free to you and can save you a lot of money.

Once you are satisfied your history is correct, ask for a new round of car insurance quotes to see if there are savings. If not, contact your state’s insurance commissioner. There’s a website for each state with a toll-free telephone number. Ask for the names of all the car insurance companies that quote without relying on a credit score. Hopefully, there will be at least one in your state. It’s tough to find affordable cover these days, so take this action to safeguard yourself.