Are Comparison Sites Impacting on Your Credit Rating?

Are you impacting your credit rating by using comparison sites?

Not many people are aware that when you are carrying out your research on the internet to save a few pounds on your car insurance, for example, you could be adversely affecting your credit rating.

When you have input your requirements and request a quote for the monthly payment, you may well be credit searched as you are effectively requesting credit. If a search is carried out it can leave a footprint on your credit file and this could lower your credit rating.

I heard of one case where a gent had been carrying out extensive reserch for his buildings insurance and car insurance. Over the course of a week over a dozen credit searches were carried out as he had requested numerous quotes for monthly paid plans. Shortly afterwards he was declined by a mortgage lender due to marginally failing there credit scoring. As he apparently had never had any credit issues, the decline was thought to be due to the excessive number of searches over a short period.

You may think that common sense would prevail and the decision could be overturned but remeber we live in a world of obedience to the decision of a computer programme!

If you are combing the internet to obtain that bargain insurance, it may be best to initially request annual quotes as these should not involve a credit search and will still allow you to consider your options and you can get an accurate mothly figure when you have decided where to apply.

Better still, use a broker!

Steve O'Mara