A big factor in determining the premium of a personal auto policy has nothing to do with a per-son’s driving record—it’s his or her credit record. According to Conning and Company, more than 90 percent of insurers use an applicant’s credit history—his or her insurance risk score—to slot him or her into a certain program.
When a person applies for auto insurance, the insurance company asks for permission to pull his or her credit information. The insurer then secures a credit report from one or more of the credit bureaus—TransUnion; Experian; or Equifax. For more information on credit reports or to secure a copy of your own report, go to http://www.credit.com.
Credit scores range from 300 to 850. If your score is below 650, you may have trouble getting insurance or you may have to pay a higher premium. In order to improve your credit score, keep in mind the following factors that influence the score.
● Payment history—The largest factor is credit and loan account payment history. A steady record of on-time payments going back several years shows responsibility.
● Debts owed—The number of accounts you currently have, including type and balance. Try to have just a few active accounts with low balances.
● Length of credit history—The longer your credit history, the better.
● New accounts—Every time you apply for a new account, a record of that application ap-pears on your credit report and drops your score. Limit the number of applications you submit.
● Balance of accounts—It is best to have between two and six open credit cards and one or two loans.
● Negative records—Collections, judgments, and bankruptcy filings will drop your score.
The Importance of Mental Toughness
One of the most important things your small business can do is hire top-performing salespeople. After all, your business would not exist if it weren’t for your sales. In fact, 82% of businesses fail due to cash flow problems. In order to push your business to success, you must be able to hire and develop mentally tough sales professionals who can be effective even under the stressful, high-stake conditions of a small business.
What is Mental Toughness?
Mental toughness refers to the unique quality found in many professional athletes that allows them to maintain fortitude under stressful conditions. While sales don’t require physical athletic ability, it does require a tough mindset to stay motivated and successfully sell your product or service.
The specific personality traits that contribute to mental toughness are:
- Stress tolerance
That’s not to say that there’s no hope for those on your small business team who don’t exhibit mental toughness. By surrounding your employees with uplifting, supportive coaches, these traits can be trained in your sales professionals and their performance will drastically improve.