Car insurance customers could secure top savings if they are registered on the electoral roll as companies could view this as a sign of stability. Experts at uSwitch claim that simply appearing on the electoral roll can add up to 50 points on your Experian credit score.
Credit history is vital for insurance policies with those showing poor scores more likely to male claims on a policy.
Because of this, costs are traditionally higher for those with poor credit ratings meaning bringing this score down is vital to secure affordable terms.
Experts at uSwitch claim that signing up to the electoral roll is one of the easiest ways to instantly boost credit ratings which will run down to premium costs.
uSwitch spokesperson Florence Codjoe said taking some simple steps could see drivers “cut the cost” of their policy.
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This can vary from credit cards to mortgages to bank loans and is an assessment in how likely you are to repay money you have borrowed.
This applies to insurance policies for customers who pay monthly.
In this case, the insurer pays the agreement in full and then demands the money back over the length of the term with interest added.
Compare the Market also confirms that drivers with a poor credit history could pay more for a monthly premium.
They warn drivers who are looking at a monthly agreement to check their credit report before applying.
This can be checked for free online and ensure drivers are not caught out with heavy monthly charges for a silly mistake.
But according to experts at Cuvva, securing a monthly plan and paying your charges on time could be the perfect solution for those with a bad credit rating.
They say that a monthly policy is a kind of ”instalment loan” and monthly payments will therefore show up on a report.
Paying on time will boost your credit score over time but they warn that any late payments will reduce it.
They warn that insurers could terminate an agreement at any time if payments have been missed in a shocking warning.
Analysis from ClearScore has highlighted that 75 percent of drivers are unaware their credit score can affect the price they pay.
They also warn that in some cases a high credit score does not guarantee they will be offered cheap car insurance.
However, they claim that giving your score a quick polish before applying could bring down your perceived risk slightly.
This could help in securing the policy at all and bringing down costs to a more affordable figure.