Your credit score can impact your health insurance premium. Here is how

Did you know your credit score can affect your health insurance premium?

Yes, it is true, a strong credit score could earn you a discount on your premium, while a poor score might actually lead to higher costs. Surprising?

A credit score is a three-digit number (ranging from 300 to 900). It is calculated based on factors like your repayment history, credit utilisation, and overall behaviour with loans and credit cards.

But why does this matter to health insurers? Well, a good credit score signals responsible behaviour. Insurers see this as a lower risk for issues like fraud, missed payments, or policy misuse. As a result, some health insurance companies now offer premium discounts to applicants with high credit scores. It’s their way of rewarding low-risk customers.

However, there is a flip side. In certain plans, if your credit score is low, the insurer might actually add a “loading” to your premium, an extra cost due to perceived risk. So instead of saving, you could end up paying more. That’s why this feature really only benefits those with healthy credit scores. So it’s important to read the fine print.