We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Premium Credit (Car Insurance) on Credit Report
freddie2020
Posts: 35 Forumite
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
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
1
Comments
-
I’ve got the same so would also like to know
0 -
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.2 -
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.0 -
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
I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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 history0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.6K Banking & Borrowing
- 253.8K Reduce Debt & Boost Income
- 454.5K Spending & Discounts
- 245.7K Work, Benefits & Business
- 601.6K Mortgages, Homes & Bills
- 177.7K Life & Family
- 259.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards