There are lots of advantages in having insurance but there are a lot of different ones to choose from which can make it hard knowing which are really worth going for. The cost of insurance could also be a big barrier and you might be looking at a solution so that you can afford it. With some insurance policies you get a significant discount if you pay in a lump sum rather than instalments and that might be something that you might consider as well. You may find though that your only option to afford the insurance is to borrow the money and this is something worth thinking hard about. You need to consider whether you will be able to get a loan as well, to pay the insurance with. If you have a poor credit record, for example, you may not be able to get a traditional loan. You may find that you will need to look at other loan options such as no credit check loans. These can be useful but it is well worth looking into what they are and how they work so that you can decide whether they will be a sensible option for you.
What are no credit check loans?
A no credit check loan is a loan where the lender does not worry about the credit record of the borrower. This means that if you have a poor credit record then these sorts of loans could be some of the only ones that you will be able to use. The types of loans do vary which means that you will be able to choose the one that fits best with your requirements. They can normally all be arranged quickly, which means that if you need the money quickly, then this should not be a problem. The loans also tend to be fairly short term, which means that they will not be around for that long.
Can I use a loan to pay insurance?
It is normally fine to use a loan to pay insurance as long as you are able to get the money on time. With a no credit check loan you will normally be able to get the money quickly, sometimes even the same day, so you should easily get it for when you need it. The money will go into your current account and therefore you will be able to easily access it to be able to pay your insurance premium. You will then be able to pay it using a BACS payment, debit card or a one-off direct debit payment. It should give you enough options that you will be able to pay the money to your insurer as required.
Is it worthwhile using a loan to pay insurance?
Even though it is possible to use a no credit check loan to pay your insurance it is worth asking yourself whether this is a sensible idea. It is best to start by working out whether you really need the insurance. There are some insurances that are a legal requirement, such as car insurance and some that your mortgage company will require you to take out such as life insurance and buildings insurance. However, many of them we choose to take out such as contents insurance, per insurance or health insurance. It is worth working out whether you really think that it is necessary to have this insurance.
If you really are sure, then you will need to examine your different options for paying for it. If you have the money in a savings account then it would be wise t use that. It might be the case that the insurer will offer you the option of ether a cheaply yearly payment of dearer monthly ones. It is worth calculating how much extra you will pay if you take the monthly option and how that will compare to the cost of the loan that you are considering. Work out whether the monthly payment option is cheaper than the loan, as if it is then this will be the best thing to do.
If you feel a loan is the right option then it is really important to find out what the repayments schedule is and whether it is something that you can afford. It is important to take a careful look at your bank statements and see how much money you normally have available to find out whether you will be able to afford the loan repayments. If you cannot afford these repayments you will find that you have to pay an additional fee or charge and this is not ideal. There might be ways that you can cut back your spending though, so that you can make them more affordable and therefore it could be worth looking at this option.