Shield Insurance Agency Blog

Welcome to the Shield Insurance Agency Blog. 

Here you will find a ton of articles on each of these topics: Auto Insurance, Boat/Watercraft Insurance, Business Insurance, Flood Insurance, Health Insurance, Home Insurance, Insurance, Life Insurance, Michigan Auto Insurance Reform, Recreational Insurance, Renters Insurance, RV Insurance, Things To Do At Home, Umbrella Insurance, and even a list of the Shield Agency Weekly Gift Card Winners,

If you have any suggestions for content, please drop us an email.

Michigan Birding - Shield Insurance Agency Blog

Michigan Birding

Posted on by Shield Insurance Agency

Michigan Birding is year-round. Michigan Audubon and its 35 chapters host field trips, workshops, and specialty birding tours throughout the year, highlighting the diversity of birdlife in the state. Our organization supports the development of a statewide network of birding trails, giving birders increased knowledge for accessing the state’s best birding locations.

Download a checklist for Michigan birding

Michigan Birding Audubon programs are available for birders of all experience levels. During the summer the organization offers tours of the Kirtland’s Warbler breeding habitat.

The annual Signature Event series offers birders the opportunity to experience seasonal migration in a fun, educational setting, and place special emphasis on conservation needs. For a complete listing of Michigan Audubon and local chapter programs, please visit our Event Calendar.

Michigan Audubon maintains a robust direct email list and is active on social media. Please subscribe to our monthly installments of Michigan Audubon E-News and consider joining our social media feeds.

Birding in a Digital World

Michigan Birding has never been easier, thanks to the wealth of resources and tools available via the Internet and smart device technology. Here are a few of our favorite online birding resources!

Birding Listservs

Online ID Tools and Smartphone Apps

eBird

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Famous Museums Offer Tours From Your Couch – Shield Insurance Agency Blog

Famous Museums Offer Tours From Your Couch

Posted on by Shield Insurance Agency

Famous Museums offer so much! Going into a self-quarantine can have many complex issues and complications beyond having enough food and supplies for two weeks. In terms of entertainment, it also probably means you’re in for a lot of boredom, a lot of Netflix, and a lot of browsing the internet.

But there is a way to get a little culture and education while you’re confined to your home. According to Fast Company, Google Arts & Culture teamed up with over 2500 museums and galleries around the world to bring anyone and everyone virtual tours and online exhibits of some of the most famous museums around the world.

Now, you get “go to a Famous Museum” and never have to leave your couch.

Google Arts & Culture’s collection includes the British Museum in London, the Van Gogh Museum in Amsterdam, the Guggenheim in New York City, and literally hundreds of more places where you can gain knowledge about art, history, and science. This collection is especially good for students who are looking for ways to stay on top of their studies while schools are closed.

Take a look at just some of Google’s top museums that are offering online tours and exhibits. Museums around the world are also sharing their most zen art on social media to help people cope with staying home. And if that’s not enough culture for you, New York’s Metropolitan Opera will be offering free digital shows every night at 7:30 p.m. Now you can even go “outside” with incredible virtual tours of some of America’s best national parks.

British Museum, London

This famous museum located in the heart of London allows virtual visitors to tour the Great Court and discover the ancient Rosetta Stone and Egyptian mummies. You can also find hundreds of artifacts on the museum’s virtual tour.

Guggenheim Museum, New York

Google’s Street View feature lets visitors tour the Guggenheim’s famous spiral staircase without ever leaving home. From there, you can discover incredible works of art from the Impressionist, Post-Impressionist, Modern, and Contemporary eras.

National Gallery of Art, Washington, D.C.

This famous American art museum features two online exhibits through Google. The first is an exhibit of American fashion from 1740 to 1895, including many renderings of clothes from the colonial and Revolutionary eras. The second is a collection of works from Dutch Baroque painter Johannes Vermeer.

Musée d’Orsay, Paris

You can virtually walk through this popular gallery that houses dozens of famous works from French artists who worked and lived between 1848 and 1914. Get a peek at artworks from Monet, Cézanne, and Gauguin, among others.

National Museum of Modern and Contemporary Art, Seoul

One of Korea’s famous museums can be accessed from anywhere around the world. Google’s virtual tour takes you through six floors of Contemporary art from Korea and all over the globe.

Pergamon Museum, Berlin

As one of Germany’s largest museums, Pergamon has a lot to offer – even if you can’t physically be there. This historical museum is home to plenty of ancient artifacts including the Ishtar Gate of Babylon and, of course, the Pergamon Altar.

Rijksmuseum, Amsterdam

Explore the masterworks from the Dutch Golden Age, including works from Vermeer and Rembrandt. Google offers a Street View tour of this iconic museum, so you can feel as if you’re actually wandering its halls.

Van Gogh Museum, Amsterdam

Anyone who is a fan of this tragic, ingenious painter can see his works up close (or, almost up close) by virtually visiting this famous museum – the largest collection of artworks by Vincent van Gogh, including over 200 paintings, 500 drawings, and over 750 personal letters.

The J. Paul Getty Museum, Los Angeles

European artworks from as far back as the 8th Century can be found in this California art museum. Take a Street View tour to discover a huge collection of paintings, drawings, sculptures, manuscripts, and photographs.

Uffizi Gallery, Florence

This less well-known gallery houses the art collection of one of Florence, Italy’s most famous families, the de’Medicis. The building was designed by Giorgio Vasari in 1560 specifically for Cosimo I de’Medici, but anyone can wander its halls from anywhere in the world.

MASP, São Paulo

The Museu de Arte de São Paulo is a non-profit and Brazil’s first modern museum. Artworks placed on clear perspex frames make it seem like the artwork is hovering in midair. Take a virtual tour to experience the wondrous display for yourself.

National Museum of Anthropology, Mexico City

Built in 1964, this museum is dedicated to the archaeology and history of Mexico’s pre-Hispanic heritage. There are 23 exhibit rooms filled with ancient artifacts, including some from the Mayan civilization.

Sadly, not all popular art museums and galleries could be included in Google Arts & Culture’s collection, but some museums are taking it upon themselves to offer online visits. According to Fast Company, the Louvre also offers virtual tours on its website.

To see more of Google Arts & Culture’s collection of museums, visit the collection’s website. There are thousands of museum Street Views on Google as well. Google Arts & Culture also has an online experience for exploring famous historic and cultural heritage sites.

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Lost Your Job Because Of Covid-19 – Shield Insurance Agency Blog

Lost Your Job Because of COVID-19?

Posted on by Shield Insurance Agency

If you’ve been laid off during the COVID-19 pandemic and lost your job, you’re not alone. Millions of Americans are losing their jobs as businesses across the country shut their doors or cut back on operations at an unprecedented rate

If you’ve lost your job or been furloughed, start with these seven steps to regroup and, eventually, rebound.

Ask the right questions

The first step is communicating with your employer. There are different types of layoffs. Some may not even be legal, or they may be addressed in your employment contract or collective agreement. Figure out if your employer is willing to commit to your return to work. Knowing the timeline can be very helpful for planning your finances and how you approach the time off.

Find the right support

There are multiple programs today to support workers, but be sure to register for unemployment benefits as quickly as possible, as the influx of applicants is causing a backlog. Also, watch for information on further Congressional emergency-response bills, which could entitle you to add funds because you’ve lost your job.

Be professional

In almost all cases, employers are trying to do their best during a difficult situation. How you act will speak volumes about your character, and as tempting as it may be, now really isn’t the time to post negative things on social media. Businesses will rebound; think about how your actions will be remembered having lost your job.

Take care of your mental health

Being laid off can be an overwhelming and stressful experience of loss and change. Make sure you are focusing on your relationships, getting fresh air and exercise, taking time for yourself and know-how, and getting up to speed on where to reach out for help if you need it.

Write a budget

As overwhelming as it may be, work on a financial plan. Take advantage of the time you have to find other ways to save, like calling your bank, mortgage broker, and utility providers to ask to defer payments. Or look for auto subscriptions on your phone or credit cards to cancel. These small amounts can add up and can be empowering, giving you a feeling of control during a very challenging time. Understanding your financial reality may encourage you to decide to seek employment in the few industries that are currently hiring.

Stay connected with your employer and coworkers

If your layoff is temporary, I encourage people to stay connected with their team and proactively check in. Empathy and will be remembered when COVID-19 has long passed.

Put long-term goals on hold

Now is not the time to worry about the long term. Focus on what can be done in this moment to get through the next few months. Everything will get back on track, but consider planning in 30-to-90-day increments. It’s much less overwhelming and gives you lots of flexibility to embrace opportunities that come your way.

Good luck, and don’t lose hope!

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70 Things To Do With Kids – Shield Insurance Agency Blog

70 Things to Do with Kids

Posted on by Shield Insurance Agency

70 Things to Do with Kids Now That We’re All Stuck at Home

The thought of an unexpected, weeks-long isolation period at home with bored children will send chills down the spine of many parents. In fact, as soon as the schools started closing, kids panicked. “What are we going to do all day if we can’t leave the house?” was a common question.

If you are looking for 70 things to do with kids while you’re stuck at home, here are some ideas. Do you have an idea that isn’t on this list? Let us know and we’ll add it! We will all need all the ideas we can get in these next several weeks.

  1. Play indoor hide and seek.
  2. Make decorations, curate a playlist, and throw a family dance party.
  3. Try a new cookie or cake recipe. Bonus idea: Set up a camera or smart phone and film a cooking show!
  4. Build a treehouse.
  5. Make a mancala counting game with an egg carton. Instructions here.
  6. Go camping in the living room.
  7. Play board games.
  8. Design and go on an indoor treasure hunt.
  9. Plan a family garden.
  10. Make ice cream in a bag. Recipe here.
  11. Make slime. Instructions here.
  12. Set up an in-home nail salon and try some nail art techniques. Ideas here.
  13. Dress up in your best clothes and have a fancy dinner.
  14. Make a piñata. Instructions here.
  15. Make friendship bracelets.
  16. Make and blow bubbles. Instructions here.
  17. Teach your pet a new trick.
  18. Make rock candy. Instructions here.
  19. Have an indoor picnic.
  20. Listen to an audiobook or podcast.
  21. Try Cosmic Kids Yoga.
  22. Make paper fidget spinners. Instructions here.
  23. Create your own bingo cards and have a bingo tournament.
  24. Create a family tree.
  25. Let your kids write and direct a stop-motion movie. Learn how it works here.
  26. Learn and play a new card game.
  27. Teach yourself to juggle.
  28. Practice origami, or the art of paper folding. Ideas here.
  29. Play with magnets on a cookie sheet.
  30. Make a maze on the floor with painter’s tape.
  31. Play with sidewalk chalk.
  32. Play indoor volleyball or soccer with balloons.
  33. Have a pizza party. DIY Pizza Bagels recipe here.
  34. Make paper airplanes and see whose plane flies the farthest.
  35. Play dress up with mom and dad’s clothes.
  36. Make your own popsicles.
  37. Go in your backyard and look for four-leaf clovers.
  38. Write a secret message in invisible ink. Recipe for lemon juice invisible ink here.
  39. Play “I Spy” inside or out the window.
  40. Clean out your closets.
  41. Facetime or Skype with family or friends.
  42. Have breakfast in bed.
  43. Have a tea party.
  44. Make a water sensory bag. Instructions here.
  45. Make some play dough.
  46. Create a nature scavenger hunt in your back yard.
  47. Play “The Floor is Lava.”
  48. Snuggle on the couch and read your favorite books.
  49. Rearrange or redecorate your room.
  50. Play in a bubble bath.
  51. Have a pillow fight.
  52. Make an indoor obstacle course.
  53. Have a family music night.
  54. Build a giant fort out of blankets, chairs and pillows
  55. Paint with Kool-Aid. Instructions here.
  56. Put on a puppet show.
  57. Make a scrapbook.
  58. Play marbles on the floor.
  59. Do a puzzle.
  60. Fold clothes together.
  61. Create a new dessert.
  62. Put on your bathrobes and play spa day.
  63. Play 20 Questions.
  64. Create creatures out of pipe cleaners. Ideas here.
  65. Make a treasure bottle. Instructions here.
  66. Decorate a T-shirt.
  67. Write letters to family and friends.
  68. Build a bridge or building with toothpicks or Q-tips.
  69. Play hangman or tic-tac-toe.
  70. Make a time capsule! One day your kids can use it to tell their kids all about this craziness.

Shield Agency hopes you can put these 70 things to good use!

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Auto No-Fault Legislation Signed By Gov. Whitmer – Shield Insurance Agency Blog

Auto No-Fault Legislation signed by Gov. Whitmer

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto No-Fault Legislation | Start a Quote Today!

FOR IMMEDIATE RELEASE   

May 30, 2019  

Gov. Whitmer Signs Historic Bipartisan Auto No-Fault Legislation  

MACKINAC ISLAND, Mich. — Today Governor Gretchen Whitmer signed Senate Bill 1, auto-no-fault-legislation, which passed with overwhelming Senate Bill 1, to reform Michigan’s auto insurance system to guarantee lower rates for every Michigan driver, protect insurance coverage options, and strengthen consumer protections.  

“By signing this legislation, we are providing relief to millions of drivers across the state and guaranteeing a better auto insurance system for everyone,” Whitmer said. “This historic deal shows that, when we put party aside, we can find common ground on our state’s toughest issues to provide realistic and affordable coverage options for drivers across Michigan.” 

Senate Bill 1 reforms a broken auto insurance system and offers historic protections for drivers across our state. The bill, negotiated by Governor Whitmer with legislative leaders, will save drivers money by: 

  • Guaranteeing lower rates for drivers for eight years;   
  • Protecting people’s choice to pick their own Personal Injury Protection (PIP) options with coinciding PIP rate reductions, offering unlimited coverage (10% PIP reduction), $500K coverage (20% PIP reduction), $250K coverage (35% PIP reduction), $50K coverage for Medicaid eligible recipients (45% PIP reduction), or a complete opt out for seniors or anyone with sufficient private insurance (100% PIP reduction). 
  • Increasing consumer protections by banning companies from using non-driving factors, such as ZIP code, FICO score, gender, marital status, occupation, education attainment, and homeownership, to set rates. 
  • Setting fee schedules for hospitals and providers to prevent overcharging for auto-related injuries.  

“I am proud to have worked alongside Senate Majority Leader Shirkey, Senate Democratic Leader Ananich, Speaker of the House Chatfield, House Democratic Leader Greig, and all members of the legislature to solve a problem that has been hurting Michigan families for far too long. We still have more important work ahead of us, and I have no doubt that we can seize on this momentum to pass a strong, bipartisan budget that fixes the damn roads.”  

Senate Bill 1, auto-no-fault-legislation, sponsored by Senator Aric Nesbitt (SD-26), will be filed next week with the Office of the Great Seal and take effect at that time. 

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Insurance Reforms Resources To Help – Shield Insurance Agency Blog

Insurance Reforms: Resources to Help

Posted on by Shield Insurance Agency

Shield Insurance Blogs | Insurance Reforms | Contact us for more info

Insurance Reforms: Resources to Help

Insurance Reforms: The Department of Insurance and Financial Services (DIFS) has developed educational resources to help Michigan drivers navigate the state’s new auto insurance law. DIFS has launched a new website, www.michigan.gov/autoinsurance, created consumer guides, and now has a dedicated hotline, 833-ASK-DIFS (275-3437), and email address, autoinsurance@michigan.gov, where drivers can ask questions and file complaints related to auto insurance in Michigan.

In addition to creating these new educational resources, DIFS is also working to implement the legislation to ensure consumer protection and industry compliance.

In May 2019, Gov. Whitmer signed historic bipartisan auto no-fault legislation to lower costs for Michigan drivers, maintain the highest coverage options in the country, and strengthen consumer protections. These changes apply to auto insurance policies issued or renewed after July 1, 2020.

“Last year we worked closely with leaders from both political parties to preserve no-fault and create a better auto insurance system for Michigan drivers. Protecting policyholders and providing them access to affordable coverage is fundamental to the prosperity of our entire state,” said Whitmer. “Drivers are now encouraged to use these educational resources before making the important decision of choosing their auto insurance policy.”

The new site details changes in the law, new coverage options, shopping tips, and provides many other resources that help explain the new reforms and how they will affect auto policies in Michigan.

“DIFS is here to help Michigan drivers understand the new auto insurance law so they can decide on a policy that best fits their family’s needs and budget,” said DIFS Director Anita Fox. “We are focused on educating policyholders and implementing these reforms to ensure that consumers are protected and that companies are in compliance with the law.”

Following the signing of no-fault reform, DIFS began taking important steps to implement the new law. These measures include:

  • Fraud Investigation Unit: DIFS has established a new unit to investigate criminal and fraudulent activity related to the insurance and financial markets and work with Michigan Attorney General Nessel and law enforcement to prosecute these crimes.
  • New Consumer Forms on Coverages: DIFS developed new forms for insurance companies, agencies and agents to provide to drivers when choosing new coverage options.
  • Independent Actuaries: In anticipation of an increase in auto insurance company rate filings, DIFS’ rate review staff is working closely with independent actuaries to ensure the filings are thoroughly reviewed and actuarily sound.
  • Industry Bulletins: DIFS has issued more than 10 bulletins to the insurance industry regarding compliance in the areas of rate filing, reimbursement rates, and other enforcement issues.

Key Aspects of Michigan’s New Auto Insurance Law:

Lowers Costs, Maintains Highest Benefits

  • Personal Injury Protection (PIP) Choice: Drivers will be able to choose a coverage level that is right for their family. The new limits equal or exceed the highest benefits in the country and Michigan is the only state where unlimited PIP medical coverage continues to be an option. PIP medical pays for medical care if policyholders are in an auto accident.
  • Premium Reduction: Each insurance company will be required to reduce statewide average PIP medical premiums for eight years. Drivers’ overall premiums will depend on their individual circumstances and the coverage they select.
  • Fee Schedule: The new law establishes a fee schedule designed to control the costs that medical providers may charge auto insurers for their services. This is similar to cost control provisions used by other types of insurance, such as health insurance. This fee schedule will make PIP medical coverage premiums more affordable for policyholders, but will not affect the services to which existing and future accident victims are entitled.
  • Michigan Catastrophic Claims Association (MCCA) Assessment: The MCCA has already announced that as a direct result of the new law, it is lowering its per vehicle assessment starting July 2, 2020, which will save Michigan drivers at least $120 per car.

Increases Consumer Protections:

  • Elimination of Certain Non-Driving Factors: The new law prohibits auto insurance companies from using sex, marital status, home ownership, credit score, educational level, occupation, and zip codes in setting auto insurance rates.
  • Prior Approval: Auto insurance rates must now be filed with and approved by DIFS prior to being offered to consumers.
  • Fines and Penalties: The new law allows for increased fines on insurance companies, agencies, and agents for certain violations of the law.
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Auto No-Fault Reform Quick Facts – Shield Insurance Agency Blog

Auto No-Fault Reform Quick Facts

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto No-Fault Reform | Auto Insurance | Start A Quote Today

MICHIGAN AUTO NO-FAULT REFORM QUICK FACTS

On May 30, 2019, Governor Whitmer signed a historic bipartisan no-fault auto insurance reform bill to provide lower rates for Michigan drivers, protect insurance coverage options, and strengthen consumer protections.

When Does the New Law Take Effect?

The law currently requires you to carry unlimited medical coverage to pay for your expenses if you are injured in an auto accident. The new law allows you to choose a level of medical coverage when your policy renews after July 1, 2020. If you are already receiving payments from your auto policy due to injuries from an auto accident, you will continue to receive the current unlimited benefit regardless of the choice you make for the future. This is also true if you are injured in an accident between now and July 1, 2020.

Will My Auto Insurance Bill Be Lower When the Law Goes Into Effect?

Because the new law will allow drivers to choose a level of medical coverage, insurance companies are required to reduce the premium for this coverage (known as PIP coverage) so that there will be an average reduction per vehicle based on the level of coverage chosen.  Your premium and savings will depend on the PIP option you select and other coverages you choose.

How Will I Know What Choices I Have and What to Choose?

The new law requires that agents and insurers give you a form that describes the benefits and risks of the coverage options. You may also want to talk with an insurance agent to discuss your personal auto insurance needs.  In addition, DIFS’ website will be updated on an ongoing basis to provide the latest information to Michigan drivers as the effective dates of the new law approach. Please check www.michigan.gov/AutoInsurance for updates and educational materials.

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Homeowners Discount For Insurance – Shield Insurance Agency Blog

Homeowners Discount for Insurance

Posted on by Shield Insurance Agency

Dependable homeowners insurance shouldn’t have to strain your family’s budget. Nationwide helps you get affordable insurance by offering a range of homeowners discounts. Find out which homeowners insurance discounts you qualify for and start your quote today.

Multi-policy for a Homeowners Discount

Combine and save. Get a discount on home and renters insurance when you bundle your property and auto insurance with Nationwide.

Protective device

Get a discount if your home has smoke detectors, fire alarms, burglar alarms, or other qualifying devices.

Claims-free

You may qualify for a lower premium on your home insurance when you stay claims-free.

Home renovation credit

Get a homeowners insurance discount for renovating your home’s plumbing, heating, cooling, or electrical systems.

Roof rating

Save money based on your roof’s age and surface type.

Home purchase

Receive a discount if you purchased a home within the last 12 months.

Prior insurance

This discount is available to new members and is based on the number of years you were continuously insured by your previous carrier.

Gated community

A discount is available when all vehicle entrances to your community are protected at all times by security guards, residence cards, or key-lock devices.

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Which Car Brands Make The Best Vehicles – Shield Insurance Agency Blog

Which Car Brands Make the Best Vehicles?

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Shield Insurance Blogs | Car Brands | Auto Insurance | Start A Quote Today!

Consumer Reports’ exclusive testing and member survey data reveal the best and worst automotive brands overall

By Consumer Reports Last updated: February 20, 2020

Porsche pulls into the top spot this year, leapfrogging third-place Subaru, whose score remains unchanged. Genesis holds steady in second place.

Those are CR’s findings, based on our exclusive testing and member surveys. The leaders benefit from outstanding results in our road test and reliability and owner satisfaction surveys, which are factored into each model’s Overall Score. The best brands on this list tend to have more vehicles in their product lineups that consistently performed well.

CR recommends all the Porsche, Genesis, and Mazda (another top brand) models we’ve tested. Subaru falls just short of that distinction because of the below-average predicted reliability of its WRX sedan. Tesla was the biggest gainer, climbing eight positions because of the improved reliability of the Model 3 and Model S sedans.

The bottom brands are also an unchanged club, with Fiat, Mitsubishi, Jeep, Land Rover, Cadillac, Jaguar, Alfa Romeo, and GMC again falling short. We tested a total of 36 models from those brands, and we recommend only one, the Jeep Grand Cherokee.

Brands that move slightly up or down in our ranking tend to have new or redesigned model offerings, such as Audi with the A6 and A8, or changes in predicted reliability. Shoppers should remember that models from all brands can vary in reliability performance.

How We Rank the Car Brands

Brand report cards are built on an average of the Overall Score for each model tested. A brand must have at least two models tested to be included. The Overall Score is based on four key factors: road test, reliability, owner satisfaction, and safety.

• The road-test scores are for vehicles purchased by CR and run through more than 50 tests.
• Reliability predictions are based on problems reported by CR members in 17 trouble areas.
• Owner satisfaction from surveyed CR members reflects whether drivers would purchase the same car if they had it to do again.
• Safety includes crash-test results and extra points awarded for proven advanced safety features that come standard for the model.

Learn more about how Consumer Reports tests cars.

Editor’s Note: This article also appeared in the April 2020 issue of Consumer Reports magazine.

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How To Improve Your Credit – Shield Insurance Agency Blog

How to Improve Your Credit Score

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CNBC Select explains what range is considered to be a bad credit score, how to get a free credit report, and how to improve your credit score fast.

Having a bad credit score isn’t the end of the world, as long as you work toward improving it.

While bad credit may make it more difficult to achieve financial milestones, such as being approved for an auto loan or mortgage, there are steps you can take to repair your credit score.

Lenders look closely at your credit report when determining whether you qualify for the credit, such as credit cards or loans. One of the factors they consider is your credit score. This three-digit number is calculated by analyzing your financial actions, such as debt and payment history, to predict your ability to repay the money lent to you.

If you have a less than stellar credit score, you should take action as soon as possible, so you can work toward good credit and increase your odds of being approved for financial products like credit cards and loans.

Below, CNBC Select explains what credit score range is considered bad, how to improve a bad credit score, and how to get a free credit report.

The rundown: Bad credit scores

  • What is a bad credit score?
  • How a bad credit score can hurt you
  • How to improve a bad credit score
  • How to check your credit score for free

What is a bad credit score?

Credit score ranges vary based on the credit scoring model used (FICO versus VantageScore) and the credit bureau (Experian, Equifax, and TransUnion) that pulls the score. Below, you can check which credit score range you fall into, using estimates from Experian. Take note that the credit score lenders use varies, though 90% pull your FICO score.

FICO Score

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Excellent: 800 to 850

VantageScore

  • Very poor: 300 to 499
  • Poor: 500 to 600
  • Fair: 601 to 660
  • Good: 661 to 780
  • Excellent: 781 to 850

What factors influence your credit score

Credit scores are calculated differently depending on the credit scoring model. Here are the key factors FICO and VantageScore consider.

FICO Score

  1. Payment history (35% of your score): Whether you’ve paid past credit accounts on time
  2. Amounts owed (30%): The total amount of credit and loans you’re using compared to your total credit limit, also known as your utilization rate
  3. Length of credit history (15%): The length of time you’ve had credit
  4. New credit (10%): How often you apply for and open new accounts
  5. Credit mix (10%): The variety of credit products you have, including credit cards, installment loans, finance company accounts, mortgage loans and so on

VantageScore

  1. Extremely influential: Payment history
  2. Highly influential: Type and duration of credit and percent of credit limit used
  3. Moderately influential: Total balances/debt
  4. Less influential: Available credit and recent credit behavior and inquiries

How a bad credit score can hurt you

Denials for credit

A bad credit score can reduce your approval chances for credit cards and loans, making it difficult to accomplish many goals. If you want to get out of debt with a balance transfer card, such as the Discover it® Balance Transfer, you’ll need good or excellent credit. And if you want to earn rewards or receive luxury travel perks, it’ll be near impossible to find a card that accepts bad credit.

Less favorable loan terms

If you’re approved for credit, odds are you’ll receive less favorable terms, such as high-interest rates or annual fees, compared to applicants with good credit. For example, one of CNBC Select’s best credit cards for bad credit, the OpenSky® Secured Visa® Credit Card, has a $35 annual fee; though there are no annual fee options.

Limited credit card choices

Bad credit limits which credit cards you can qualify for; the options you have will be primarily secured cards. While a secured card, such as the Discover it® Secured or the Capital One® Secured Mastercard®, can help you rebuild credit, you’re required to make a security deposit — typically $200 — in order to receive an equivalent line of credit.

Take note that even if your credit score falls within the bad range, that is not a guarantee you’ll be approved for a credit card requiring bad credit. Card issuers look at more factors than just your credit score, including income and monthly housing payments.

How to improve a bad credit score

If you have bad credit, take some time to review your credit score and identify the cause. Perhaps you’ve missed payments or carried a balance past your bill’s due date. In order to achieve a fair, good, or excellent credit score, follow the credit-building tips below.

  • Make on-time payments. Payment history is the most important factor in your credit score, so it’s key to always pay on time. Consider setting up autopay to ensure on-time payments, or opt for reminders through your card issuer or mobile calendar.
  • Pay in full. While you should always make at least your minimum payment, we recommend paying your bill in full every month to reduce your utilization rate, which is the percentage of your total credit limit you’re using. To calculate your utilization rate, divide your total credit card balance by your total credit limit.
  • Don’t open too many accounts at once. Every time you submit an application for credit, whether it’s a credit card or loan, and regardless if you’re approved or denied, an inquiry appears on your credit report. Inquiries temporarily reduce your credit score by roughly five points, though they rebound within a few months. Try to limit applications as needed and shop around with prequalification tools that don’t hurt your credit score.

How to get a free credit score

There are dozens of free credit score services available that offer your free FICO Score or VantageScore. Here are some popular free credit score resources.

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