Klient Banku

sweetdrmz6 asked:


I was just wondering if I pay my monthly insurance bill if my credit score would go up?
I am trying to build my credit score after having a real bad score. I know that if you have a recurring payment it will increase the score, but does that include car insurance?
I have the money to pay my insurance for the year all at once (birthday present) but if it helps my score to pay monthly, I’ll just keep the money in my account and pay monthly.
Thanks!

Comments»

1. Lover of Life - December 1, 2009

it wouldn’t be reported to your credit report so it wouldn’t make a difference. I pay my home insurance monthly and they just send me the monthly bill plus an additionally monthly handling fee. If I stop paying they cancel the policy for the remainder of the year so there’s no reason to ever report anything to to the credit bureau, especially since they never pulled my credit to approve me for the insurance in the first place, has nothing to do with someone’s credit.

2. bdancer222 - December 3, 2009

I think Insurance, like rent and utilities, is not considered an extension of credit and is not reported to the credit bureaus.

3. Willard N - December 6, 2009

Getting new auto insurance is one of the easiest ways to save car expense. Get a easy quote at a website they sometimes give lots of quotes.

I tell me friends about

4. Dixie Darlin' - December 7, 2009

I think In order for an account to be reported it has to be “borrowed” money being repaid. That means an personal loan or credit card.

Rent, utilities, cell phones or insurance payments, none of these things are reported.

5. Doctor Deth - December 7, 2009

it doesn’t even show up on your credit report – I pay monthly because it;s easier to budget my money that way – it costs maybe $25 a year more to pay it that way – it’s worth rather than trying to save up $1000 every 6 months and not spend it

6. Dil Hara - December 11, 2009

Keep in mind that your credit score could be your “best of friend” or the “worst of your enemies”. The higher your credit score is the higher chance you have to qualify for loans and credit cards with lower interest rates and easier terms of payments. The lower the interest rate, the more savings you can generate in the long run.

And that is a good thing.

On the other hand, lower credit score will give you headaches, making it difficult for you to secure a loan or credit card, not to mention the higher interest rate applied in case you will be able to qualify for a loan or credit card. Thus, possessing lower credit score will really make your head ache and will make you dig in your pockets beyond the limits.

At this point, you should consider improving your lower credit score. There are several options that you can take, yet you are just three steps away from improving your credit score. How will you do it? Take a look on the following and make sure you will be able to follow them.

1. Inspect your credit reports for any inaccurate entries. Keep in mind that errors in credit reports are very common, thus it is recommended that you examine your credit reports at least twice a year. In this way, you will be able to pinpoint any mistakes and fix the problem before it can do serious damage to your credit performance. You can obtain your credit reports from the three major credit reporting agencies in the United States.

2. Always pay financial obligations on time. Do not underestimate the value of making payments on time. Keep in mind that one of the major factors that can affect your credit score is your habit in paying your financial obligations. If possible, pay your bills ahead of the scheduled due date. If you have problems in making payments on time, you may also consider automatic mode of payments.

3. Use credits on a minimum basis. If you are using credit cards, avoid making purchases beyond your credit limit and attempt to keep your balances at bay—let us say, around 25 percent below your credit limit. It will help you avoid accumulating huge debts that may come from unwanted purchases using credits.

Credit score is very vital, especially if you have plans of securing loans in the future. Thus, if you have a lower credit score, do not waste time and follow the aforementioned three steps to improve it. Make your credit score as an asset and not as a liability.