Yes. In most states, your credit history can affect what you pay for renters insurance. Many insurers use a credit-based insurance score, a number built partly from your credit report that estimates how likely you are to file a claim, as one of several pricing factors. A few states limit the practice, and federal law requires the insurer to tell you if credit information led to a higher price. Here is how it works and what you can do about it.
Key takeaways
- Renters insurance prices can depend partly on a credit-based insurance score, which predicts the likelihood of an insurance claim rather than loan repayment, according to the NAIC (2026).
- About 85% of homeowners insurers use credit-based insurance scores where state law allows, according to a FICO estimate cited by the NAIC (2026); renters policies are priced by the same property insurers.
- If information in your credit report leads an insurer to charge you more for renters insurance, the Fair Credit Reporting Act requires an adverse action notice naming the credit bureau and explaining your right to a free report, according to the FTC.
- State rules on credit and renters insurance differ: Maryland prohibits credit as a rating factor in homeowners insurance, Michigan and Oregon limit its use in personal insurance, and Texas bars credit from being the only reason to deny or cancel a policy.
- Correcting errors in your credit report can lower a renters insurance price; in Texas, an insurer must re-rate your policy within 30 days after a credit dispute is resolved in your favor.
Does my credit score affect renters insurance?
Usually yes, though not the same score your bank uses. Most insurers that sell renters insurance can look at information from your credit report when they price or underwrite a policy, unless your state forbids it. The NAIC lists credit-based insurance scores alongside claims history, property characteristics, location, coverage limits and deductibles as the factors insurers weigh together, so credit is one input, not the whole price.
How much it moves your premium depends on the insurer and the state. There is no official figure for how much renters insurance prices differ by credit tier, and insurers weight the factor differently. For the other things that drive cost, see how much renters insurance costs.
What is a credit-based insurance score?
A credit-based insurance score is a number calculated partly or entirely from your credit history that estimates how likely you are to file an insurance claim. It draws on the same credit report as a regular credit score but is built for a different purpose:
| Credit score | Credit-based insurance score | |
|---|---|---|
| What it predicts | Whether you will repay a loan | Whether you will file an insurance claim |
| Who uses it | Lenders and card issuers | Insurers, where state law allows |
| What it is built from | Your credit report | Your credit report (partly or entirely) |
| Can you see the exact number? | Usually, through your bank or a bureau | Not usually; ask the insurer what affected your price |
The NAIC explains that traditional credit scores predict loan repayment while insurance scores predict the likelihood of a claim. Checking your insurance score is not the same as applying for credit, so a quote doesn’t lower your credit score.
Which states limit credit-based insurance scores?
A handful of states restrict how insurers use credit for home and renters insurance, and the rules vary a lot. These are verified examples, not a complete list:
| State | What the rule says | Which policies |
|---|---|---|
| Maryland | Credit may not be used as an underwriting consideration or rating factor | Homeowners insurance (Md. Ins. § 27-501); ask the Maryland Insurance Administration how it applies to your renters policy |
| Michigan | Credit can’t be any part of a decision to deny, cancel or nonrenew; you can ask to be re-rated once every 12 months; the score can’t use income, gender, address, ZIP code, ethnic group, religion, marital status or nationality | Personal insurance (MCL 500.2153) |
| Oregon | Credit can’t be used to cancel or nonrenew a policy in force more than 60 days; at renewal, rates can only rise on factors other than credit; you can ask to be re-rated once a year | Personal insurance (ORS 746.661) |
| Texas | Credit can’t be the only reason to deny, cancel or nonrenew; hardship exceptions on request; re-rating within 30 days after a dispute is resolved in your favor | Personal insurance, including residential property (Tex. Ins. Code ch. 559) |
| Washington | A temporary 2021 ban on credit-based pricing was struck down in court; insurers may use credit again | Personal insurance (state Insurance Commissioner, 2022) |
Several other states regulate credit-based insurance scores for auto insurance only. If your state isn’t listed here, your state insurance department can tell you what applies to renters policies.
What are my rights if my credit raises my renters insurance price?
You have the right to be told and to see your report. Under the Fair Credit Reporting Act, if anything in a credit report plays a part in an insurer charging you more, including at renewal, the insurer must send an adverse action notice. According to the FTC, the notice must name the credit bureau that supplied the report, state that the bureau did not make the decision, and explain your right to a free copy of your report within 60 days and your right to dispute anything in it that is wrong.
Can I ask for an exception after a hardship?
In some states, yes. Texas law requires insurers to consider exceptions, on your written request, when your credit was hurt by extraordinary life circumstances, including a catastrophic illness or injury, the death of a spouse, child or parent, a temporary job loss, divorce, or identity theft. Other states have similar rules, so ask your insurer in writing and check with your state insurance department. If identity theft damaged your credit, see does renters insurance cover identity theft?.
How do I check and fix my credit report?
Start with the free reports and dispute anything that is wrong:
- Get your reports from AnnualCreditReport.com, the only site the FTC authorizes for free federally required reports, or call 1-877-322-8228. All three bureaus offer free weekly online reports, according to the FTC (2026).
- Dispute errors in writing with the credit bureau (Equifax, Experian or TransUnion), with copies of your documents, and with the company that supplied the information. The CFPB says the company generally must investigate within 30 days.
- Once an error is corrected, ask your insurer to re-rate your renters policy. Some states, such as Texas, require it.
How else can I lower my renters insurance price?
Credit is only one lever. A higher deductible, bundling with auto insurance, safety discounts and comparing at least three quotes usually matter just as much; how to get renters insurance walks through shopping step by step. A history of claims can also raise your price (does renters insurance go up after a claim?).
Sources
- NAIC: Credit-based insurance scores (updated 2026)
- Federal Trade Commission: Consumer reports: what insurers need to know (2014, updated 2025)
- Federal Trade Commission: Free credit reports (2026)
- Consumer Financial Protection Bureau: How do I dispute an error on my credit report? (2026)
- Maryland Insurance Administration: Bulletin 21-26, Use of credit in homeowners and private passenger motor vehicle insurance (2021)
- Michigan Legislature: MCL 500.2153 (current law)
- Oregon Revised Statutes § 746.661 (current law)
- Texas Insurance Code, Chapter 559: Use of credit information (current law)
- Texas Department of Insurance: Credit scoring and insurance (2025)
- Washington Office of the Insurance Commissioner: Final order on court’s credit scoring decision (2022)
New to this? Start with What is renters insurance?
This site offers general information, not insurance or legal advice. Coverage, prices and rules vary by insurer, policy and state, so always read your own policy and ask your insurer or agent about your situation.