For some entrepreneurs, buying an existing business represents less of a risk than starting a new business from scratch. While the opportunity may be less risky in some aspects, you must perform due diligence to ensure that you are fully aware of the terms of the purchase.
To understand the credit report question, you have to understand that insurance companies are like giant baskets. Their policyholders pay money into the basket. Then, insurance companies pay claims from the money that's in the basket to those who need it. The amount you must contribute to the basket depends on how much insurance you want and how you're categorized as an insurance customer. The secret to lower rates is to be part of a group that has a lower probability of filing a claim.