Premium Credit (Car Insurance) on Credit Report

freddie2020

Hi,

For the first time ever for some reason Premium Credit - the company that pays for your car insurance upfront, and then pay them back if choose Monthly insurance payments.
Has shown on my credit report.

Is show as a Loan on my Report.

Will this improve my credit score?  Or is car insurance viewed like a Mobile Contact - and does not carry much weight.

Thanks

happy2017

I’ve got the same so would also like to know

MorningcoffeeIV

Whether it changes your score is irrelevant.

Lenders will see it as another loan and liability.  More to the point, it's an expensive way of buying insurance.

Best avoided if at all possible.

freddie2020

Sure yes - is more expensive that is for sure!

Yes - so long as seen as a loan and do not miss any payments should help credit report.

sourcrates

I`ll just put this here again for you to look at -

What your Credit Score really means - Please read first before posting about a credit score issue. — MoneySavingExpert Forum

DullGreyGuy

Its a low value high interest loan, it will show on your credit history as such and other lenders will be free to make what they want of it. 

Most home/car policies are annual irrespective if you pay for them in one go or monthly. When you pay for it monthly you are effectively given a loan for the monies but in some cases, particularly smaller brokers, they will use an outside finance house like Premium Credit because they have to pay the insurer within X days in full and dont want the credit risk exposure of you not repaying them.  In this case its a true legal loan and will be reported as such on your history