Protecting Your Credit Score
Most of us will have used a comparison website at some point. We can now easily hop online and check the most competitive quote for a range of services from car, life, buildings or content insurance to a great broadband or energy deal.
The growth of comparison websites over the last few years shows they’re big business. However, how do you compare the comparison sites to know you’ve had access to the actual best deal without trawling each and every one? Also, are you just buying for the incentives, be it a cuddly mascot or bonus film package and not actually receiving the most competitive offer?
Hard credit checks do a full search of your credit file and can harm your credit score if too many are carried out over a close period of time. They’re used whenever you apply for credit so if you want to pay monthly for your compared insurance product, that’s when a check would take place. Once this has happened, the information stays on your file for 12 months.
The downside to having too many checks within that 12-month period are that it can lower the chances of you securing the best deal. Each check impacts and lowers your credit score. Lower credit scores mean more risk to those granting the credit and so higher rates are applied.
On the other hand, if you head to a whole of market provider, you will be able to make an informed decision before going through a credit check should you want to take up a product and pay for it in monthly installments. At Covertree we offer a fully advised service without the need to run any credit searches. Talk to us about your needs and we will find the right product for you.