Written by: Andy Walton - Proposition Director - Protection
Without protection insurance, you run the risk of getting into a bad financial situation should the worst happen. Even through illness or death, you want to make sure that your family’s financial health remains stable. and you get sick or pass away.
Your financial health plays a critical role in various aspects of your life, from securing a mortgage to financing a new car. However, the impact of a less-than-stellar credit score can have an impact on another unexpected area - getting insurance.
If you find yourself in the position where you’d like insurance, but are concerned that your credit score will negatively impact your chances, keep reading.
Understanding your credit score
A credit score, also referred to as a credit rating, is a three-digit number reflecting your borrowing and repayment reliability. A higher score increases the likelihood of approval for mortgages, loans, credit cards, but when it comes to insurance, there is rarely a reason for credit checks. .
An insurer may run a soft credit check to verify your identity, but to do anything more in depth, they would need your consent.
The importance of insurance
Having the right insurance for your circumstances means having a reliable form of ‘protection’, a term used to describe different types of policies that can help keep you and your family financially protected, should the worst happen.
At Mortgage Advice Bureau, we can provide life insurance, income protection, critical illness cover, building and contents insurance, and mortgage payment protection.
Low credit score and protection
Having a low credit score is not always the result of poor credit repayments and isn't the only reason for a low credit score. Sometimes it’s down to a lack of credit history - simply having no or little evidence that you can reliably pay what you owe.
The reality is that you can get protection insurance with a low credit score, since most insurers won’t need to check your score. Because there is no ‘credit’ involved, there’s no need to check your creditworthiness. The only time this may come up is if you’re paying off a lump sum monthly, but this is more typical for policies like car insurance.
The next steps
As we’ve explored in this article, getting the right protection for both yourself and your family is important. If you’d like to speak to someone about your current circumstances and needs, including getting insurance with bad credit, our experts are here to offer award-winning advice.
Important information
For insurance business we offer products from a choice of insurers.
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