Education

Interesting Reads

3 credit factors that might affect your auto & homeowner's insurance premiums

(BPT) - People think of their credit scores when measuring their "creditworthiness," like when they're looking to take out a loan, buy a home or open a new credit card. But did you know your insurance credit score can affect your auto insurance premiums too?

Before auto insurers take you on as a policyholder, they might use your credit score as an indicator to evaluate how likely you are to file a claim. If your score doesn't fit within their standards, you may get charged a higher premium. On the other hand, some insurance scores are loss ratio models, so they actually rank you based on the probability that you'll be a more profitable customer.

According to Consumer Reports, the difference in auto insurance premiums related to credit scores can be significant. Drivers who only have "good" scores can end up paying from $68 to more than $500 more annually in comparison to those who have excellent scores.

Moreover, it's important to know that your credit score is not the only factor that determines your premiums. According to Experian, if you live in Hawaii, California, Massachusetts or Michigan, auto insurers can't even use your credit information to determine auto insurance premium.

What matters most for your premiums

Insurance companies say that a person's credit scores help them to better predict their risk of insurance losses. While a score evaluation can seem like a broad judgment, there are often certain factors auto insurers will look at when determining your monthly premium, such as:

How long you've had credit

This holds for most insurers and lenders. The longer a person has credit and keeps that credit in good standing, the higher their score. However, while people who've had credit longer can stand a good chance at getting a lower premium, it's not a guarantee. Insurance companies may still view you as a risk if, for example, you have an excellent credit history but a poor driving history.

Your payment history

When you sign up for auto insurance, your provider wants to gauge whether you are in financial stress or not and how likely it is that you will file a claim. So if you regularly pay your bills when they're due and don't have any missed or delinquent payments reflected on your score, you should be OK.

However, with life's unexpected twists and turns, sometimes it's hard to maintain a healthy credit score, even if your score is historically excellent and you are seen as low risk. Fortunately, many auto insurers understand this and will offer you a reconsideration for the amount of your premium for what they call "extraordinary circumstances." Some of those circumstances may include:

  • Death
  • Divorce
  • Serious illness/injury
  • Temporary and involuntary loss of employment
  • Military deployment

Situations often vary and insurers often have different policy guidelines. If you're curious, contact your insurer to see what circumstances they do and don't consider.

The types of credit you have

Auto insurers, like lenders, want to see the correlation between various factors, such as a good credit mix and a lower credit risk.

Get your credit report before you apply

Applying for insurance can feel daunting. But when you have the right credit information in your hands, you should be able to get a better idea of what to expect. Generally speaking, a strong credit score can help you qualify for lower insurance premiums when you shop around.

Check your free VantageScore credit score here: https://vantagescore.com/consumers/education/tools/free-credit-scores.

Working remotely? What to know about cybersecurity

(BPT) - If you are employed in the US, it's more likely than not that you worked remotely this past year.

52% of Americans have done part or all of their jobs from home during the pandemic. That's even more than the number of Americans with a college degree.

Over time, we've perfected some aspects of remote and hybrid working - from comfortable chairs to Zoom happy hours.

But there's one thing that remains a major problem for most people: cybersecurity.

A homegrown problem

Work-from-home arrangements have contributed to a 238% increase in global cyberattack volume during the pandemic. And the attacks haven't simply grown in amount - they're more costly, too. The average cost of a data breach rose by 10% to a staggering $4.24 million.

 Why? Because employees aren't following cyber standards and best practices. For instance, the vast majority of employees are using work devices for personal tasks and personal devices for work. Some of you might even be thinking, "What's wrong with that?"

Now, more than ever, we all need to take cybersecurity seriously. "Cybersecurity is a top priority because our clients entrust us with their sensitive information and personal finances," says Bashar Abouseido, Managing Director and Chief Information Security Officer at Charles Schwab. "We make it everyone's business. We train every employee on best practices so that our clients can rest assured that their money, investments and financial futures are safe."

Cybersecurity is everyone's business

You might be thinking, "Another lecture about compliance? Did my IT department pay you to write this?" But everyone has a stake in cybersecurity.

  • It impacts the employer. Businesses can lose more than money - their reputation, customers and even ability to stay open are at stake. In fact, 60% of small and midsized businesses that are hacked go out of business within six months.
  • It impacts the employee. Not only can hackers unlawfully access company data through employees, but personal data can also be compromised. From social media accounts to personal finances, sensitive information becomes vulnerable without proper safeguards in place.
  • It impacts the client. It takes a lot of trust to put your own data in someone else's hands. Sometimes, the stakes are incredibly high. Financial services companies, for instance, are entrusted with everything from employment information and income to Social Security numbers and retirement savings.

What's next?

Here are four ways remote employees can protect themselves, their clients and the companies they work for:

  • Don't mix business and personal devices: Using personal devices for work-related activities can easily put company data at risk if there is a breach. And that goes both ways: If the company is hacked, personal data may also be stolen.
  • Avoid public Wi-Fi: It's great when you don't need a password to connect to the internet at your local coffeeshop or airport, right? Hackers agree! Public Wi-Fi networks are inherently insecure, and that means it's best to avoid them if at all possible.
  • Get a virtual private network (VPN): These networks provide encrypted connections, ensuring that sensitive information is safely transmitted.
  • Use multi-factor authentication (MFA): When transmitting sensitive information over the internet, look for websites that ask you to verify your identity by receiving an email, text or call. Microsoft recently found that MFA prevents an astonishing 99.9% of all cyberattacks.

Visit https://www.aboutschwab.com/cybersecurity to learn more about cybersecurity and how to keep yourself safe.

Taking the mystery out of cholesterol

(BPT) - Research indicates that nearly 38% of US adults aged 20 years or older have high cholesterol, which puts them at a higher risk for heart attack and stroke. But high cholesterol can be "silent." "If you have high cholesterol, you'd never know it, because it causes no symptoms," Janet S. Wright, MD, FACC, director of CDC's Division for Heart Disease and Stroke Prevention said. "That's why it's so important to get your cholesterol levels checked regularly."

You've probably heard of high cholesterol. Let's make sure you have the facts about what it is, who is at risk, and how to prevent high cholesterol.

Is all cholesterol bad?

Cholesterol is a fatty, waxy substance that is made by your liver and is also found in certain foods. Cholesterol, which travels through the blood on proteins called lipoproteins, is necessary to make hormones, protect nerves, and more. But the risk of heart attack and stroke rises when a person has high levels of the bad cholesterol, known as LDL (low-density lipoproteins), or low levels of the good cholesterol, known as HDL (high-density lipoproteins). HDL removes cholesterol from your bloodstream back to your liver and out of the body. The higher your HDL lever the lower your risk for heart attack and stroke.

Over time, high levels of LDL or low levels of HDL can cause deposits in walls of arteries throughout the body. This "plaque," a mixture of fat, calcium, cholesterol, and more, can cause the artery to gradually narrow, limiting blood flow to the organ. The plaque can also suddenly rupture, closing the artery and causing organ damage, such as a heart attack or stroke.

So, you want to keep your total cholesterol and LDL levels low and your HDL high. A healthy total cholesterol level is below 200 mg/dL. Depending on other risk factors you have, you should aim for an LDL level of 100mg/dL or lower, and an HDL level of 40mg/dL or higher for men and 50 mg/dL or higher for women. Regular blood cholesterol checks can help you manage your levels.

What causes high cholesterol?

Certain health conditions can increase your risk for high cholesterol. They include:

  • Type 2 diabetes.
  • Obesity.
  • Familial hypercholesterolemia (FH), a genetic condition causing a very high LDL.

Lifestyle choices can also increase your risk. These include:

  • Diet high in saturated and trans fat.
  • Low physical activity.
  • Smoking tobacco.

Age, sex, and family history also can increase your risk.

Can you prevent high cholesterol? Regular cholesterol checks will help you keep your levels under control. Your doctor may recommend diet and exercise and possibly medicine, to help you achieve control.

Eat a diet rich in fresh fruits, vegetables, and whole grains. The more colorful your foods, the better. Get protein from low-saturated fat sources, such as fish and chicken, beans, nuts, and seeds. Eat less of foods that are high in saturated fats, such as red meat, cheese, and butter. Choose low-fat dairy or fortified soy products.

Regular physical activity is vital to control your weight, lower triglycerides (a type of fat that is harmful if present in high levels),) and increase HDL cholesterol. The Physical Activity Guidelines for Americans recommends that adults get 150 to 300 minutes of moderate physical activity each week Also, small amounts of physical activity add up, so take brisk walks, ride a bicycle, or use the stairs to increase activity.

"Smoking harms many parts of the body, including the heart, brain, and blood vessels all over the body. Tobacco use speeds up that plaque formation in the arteries, increasing the risk for heart attack and stroke," said Dr. Wright. "Quitting at any age can lower your risk for heart disease. My advice is simple: If you don't smoke, don't start. If you do smoke, quit."

Also, limit alcohol intake, which can increase cholesterol and triglyceride levels. High triglycerides, combined with low HDL or high LDL, can increase your risk for heart attack and stroke.

Finally, your doctor may prescribe a medicine, usually a statin, to control cholesterol levels if you have heart disease, a family history of heart disease, diabetes, or have been unable to manage cholesterol with diet and exercise alone. Work with your health care team to find the best ways for you to control cholesterol.

For more information, check out CDC's Cholesterol website.