Post office home insurance, premium credit

cluelessnurse

Hello everyone,  So I have post office home insurance.  My bank (Barclays) was increasing the premium so much every year, I left to look elsewhere.  However,  I have realised that this is marked on my credit files as an account with Premium Credit.  It is time for renewal.  If I go with them again and take the monthly payment offer, am I actually taking out a new credit agreement which will reflect badly on my file? I took out a couple of credit lines over the last year, so don't want this to affect my rating which is currently pretty good.  This means a lot to me as my credit rating was in my boots for many years and I have worked very hard to improve it. If it does count as a credit application, I would be really grateful for some pointers on affordable home contents insurance companies who don't do this. Thank you all!

[Deleted User]

Paying monthly results in taking a loan. Pay in full if you can. 

Neither your boots nor your credit rating have any impact on your credit worthiness, but your indebtedness will.

cluelessnurse

Thank you for your quick response. I had never thought of home insurance as a loan before... Is it the same if I take out a policy with my bank? 

[Deleted User]

If you need to pay monthly, you're taking out credit. The provider isn't the issue.

[Deleted User]

Paying monthly is like the insurance company lending you the money to pay the policy and then you pay them back hence it is on the credit report