The Importance of Having Good Credit for Home Security

Written by | Updated August 11, 2014

A good credit score can make it easier to get a home loan, but it can help with even more than that, including helping protect your home. With good credit, a customer may benefit from a better payment plan, improved equipment deals, and lower home insurance rates. In this instance, a credit check helps rather than hinders a potential home security customer.

Here are some of the details of the benefits someone might expect from having good credit when signing up for home security.

Spreads Out Upfront Payment Over Time

Home security customers are often required to pay a fee upfront for equipment, installation, and services, such as 24-hour professional monitoring or access via a smartphone. Depending on the company and the contract details, this upfront cost varies for each customer.

When a customer arranges a down payment with the home security company, that company may allow the customer to spread out the upfront payment over time, as long as the company receives timely monthly payments. The company runs a credit check to determine eligibility for this payment plan. If the customer has good credit, which shows he or she has a history of paying bills on time, then the home security company is more likely to offer the payment plan to the customer.

Better Equipment and Services

When a customer can spread out an upfront payment over time, he or she may be more financially able to afford a higher upfront payment because the customer does not have to pay it all at once. One reason an upfront payment is higher is because the contract involves more equipment, such as more door or window alarms, security camera systems, or smoke alarms, or services.

Therefore, the ability to afford a higher upfront payment because of a payment plan means that the customer with good credit can afford the additional equipment and services if he or she wants them.

Lower Home Insurance Rate

Many factors go into home insurance rates, and having a home security system in place is one of them.

If a customer with poor credit cannot benefit from an installment plan and cannot afford the upfront payment, then he or she may go without home security altogether. If having a good credit score, and thus the installment option, means that a customer can afford the home security system, then he or she will benefit from a lower home insurance rate.

Some home insurance companies offer up to a 15 percent discount on monthly premiums if a home security system is in place. If the home security system comes with deadbolts, this may be another home insurance discount depending on the company.

Not having good credit doesn’t mean potential buyers can’t find home security protection. But a higher credit score can only improve your situation, particularly when it comes to affording initial payments for equipment, installation, and service deposits. While having a better credit score is in their favor, buyers don’t need to let a credit check scare them away from purchasing the home security system they desire.

Written by Carolyn Heneghan

Carolyn is a nutrition and environmental crusader who loves using and exploring technology almost as much as she enjoys writing about it. Learn more

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