Do car Insurance payments affect your credit rating?

Rachel2016

Do car Insurance payments affect your credit rating?
My car insurance renewal is due soon, I've heard that paying yearly rather than montly is better for keeping your credit rating good, is this true?

DCFC79

Rachel2016 wrote: »

Do car Insurance payments affect your credit rating?
My car insurance renewal is due soon, I've heard that paying yearly rather than montly is better for keeping your credit rating good, is this true?

Well for a start your credit rating is neither here nor there, no 1 except you can see your rating/score.

Pay it yearly if you can afford to do so.

Maybe read this thread

https://forums.moneysavingexpert.com/discussion/4974939

HappyMJ

Rachel2016 wrote: »

Do car Insurance payments affect your credit rating?
My car insurance renewal is due soon, I've heard that paying yearly rather than montly is better for keeping your credit rating good, is this true?

Sometimes. It depends if the insurance company reports the premium as a credit agreement and reports the payments. As long as you pay on time then it doesn't matter if they do report.

Paying insurance in one payment is usually cheaper than paying in instalments.

GingerBob_3

HappyMJ wrote: »

Sometimes. It depends if the insurance company reports the premium as a credit agreement and reports the payments. As long as you pay on time then it doesn't matter if they do report.

Paying insurance in one payment is usually cheaper than paying in instalments.

That is, provided neither party makes any mistakes or oversights. Such problems frequently occur when policies are cancelled or not renewed. Due to the malevolent nature of credit reporting you can end up being mugged with a late payment marker for no good reason. Try to minimise the number of non-lending organisations reporting you to the CRAs. That way you minimise the opportunities for mistakes. One way of doing this is to pay all your insurance bills up front.

Rachel2016

Great, yearly it is then.
Thanks!