In most U.S. states, an individual's credit score has long been one of several factors that most insurers use to determine home and auto insurance policy rates along with such details as location, occupation and demographics. In fact, an insurer doesn't need an individual's permission to look at their credit score, according to the State of New Hampshire Insurance Department. "An insurance company can only use your credit-based insurance score as one factor in its underwriting process," the National Association of Insurance Commissioners says. "It will be considered with several other factors that vary by insurance type." The Insurance Information Institute also educates consumers about the fact that higher credit scores often result in more favorable premiums. But the practice is not without controversy. For instance, during the COVID-19 pandemic, Washington State Insurance Commissioner Mike Kreidler attempted to ban credit-based premium determinations, a move that was blocked by the state's Superior Court. However, a handful of states such Hawaii and California have outlawed the practice. WalletHub recently looked at how different cities and towns in the U.S. stack up when it comes to residents' median credit scores. The slideshow above illustrates the places with the lowest median credit scores in the U.S. That data point, however, may be the only thing the cities and towns on this list have in common. They vary widely in size, density and income levels. See also: |

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