Paying car insurance by credit card

iamtylerpotts

Hello,

I have finally decided to start getting my head down and build my credit score to buy a house. My car insurance is due soon and I was wondering if anyone knew if paying for car insurance monthly from the insurer is better for your credit score than annually? If so is it a good idea to pay the monthly instalments by credit card to further increase my credit rating?

Thank you for taking the time to read this.

[Deleted User]

Ignore the score. Lenders are only concerned with how you manage your credit.

You just need to use the card for regular spend and clear it in full each month.

Paying for your insurance monthly is much more expensive than annually.

MalMonroe

If you can afford to, I'd pay for annual car insurance. It works out cheaper and you aren't tied to some credit agreement. I've paid both ways but do prefer the annual lump sum way, it's out of the way and you're not indebted to some greedy lender.

If you have a credit card, buy it on that. If your credit card has 0% interest so much the better. Mine does and that is how I'll be buying my insurance at the end of this month. But I wouldn't use my credit card to make monthly payments. That's just daft.

iamtylerpotts

Thank you for the replies! Looks like I’ll be paying annually with my credit card. Really grateful for your help.