Insurance and Credit Repair

Are your clients aware of the connection between insurance and credit repair? Most people have a vague idea, but do not really know any concrete facts. You can win over many clients, draw the right kind of attention to your business and ensure that your clients promote your business with word- of – mouth advertising by generating awareness and providing a little guidance on this matter to your clients.

What Should You Tell The Clients?

1. Make Them Aware Of The Facts

It is common knowledge that any lender will have to first look at your credit report and then decide on whether or not to lend you money. Depending on what is found on your credit report, that decision will affect the amount of interest you would incur as well as the terms and conditions on which the loan is given.

How many people know that non-lenders are also pulling credit reports before deciding on whether or not to do any type of business with you? One such entity among these non-lenders is the insurance industry. The people of the insurance industry are increasingly assessing their risk of doing business with potential policy holders by checking their credit report.

2. Employers Can Ask For Your Credit Report

Your prospective employer has the right and privilege to take your credit report into consideration before offering you a job. This is a regulated right to prevent discrimination – but it is there nonetheless. A poor credit report can cost you a job; and that is serious business. Employers often look at a persons ability to pay their debts as an indicator to their job retention. Employers do not want to hire someone only to be searching for new replacement employee again within a few days or weeks.

3. Home and Auto Insurance Providers

About 50% of the insurance providers use your credit report information to determine the rates of the premium to be charged. The lower the credit score, the higher the premium. If you wonder whether this is legal, the answer is “yes.” It is legal for insurance agencies to check your report and set the premium rate accordingly. The logic behind this is that people who have a good credit report/ score are less likely to file a claim as compared to policy holders who have a poor score/ report.

Repair Your Credit and Have A Better Life

Your business must stress this point every chance it can. The reality is that a good credit score does give you a chance at a better life. You must instill in your clients the importance of a high credit score not only during the time which they want to avail of a mortgage or a loan; but also during the times when they are in the work field and when they are raising children. A credit score affects many things such as landing a job or finding the best rates in insurance for their home or families as well as their vehicle.

You do not need to sell your credit repair services – just make your clients aware of the benefits they would enjoy if their credit report and score were better. In fact, you do not need to say anything about coming to your business for help with their credit repair. This is a subtle way to promote your business as your clients will be grateful to you for the information and your “indirect” help, thus helping your business grow anyway.

As strange as it may sound- a great way for your business to grow is by not constantly trying to bleed your clients pockets. While that may earn your business a profit once it will not encourage your clients to return to you. In order for your clients to value your business they need to make or save money because of your business not in spite of it.

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