Does paying car insurance monthly build credit?

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asked Feb 22, 2020 in Insurance/Registration by MamaD900 (300 points)
Does paying car insurance monthly build credit?

1 Answer

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answered Feb 22, 2020 by Shelde (51,110 points)
Paying car insurance monthly does not help build credit.

But if you can only afford to pay your car insurance monthly then that's okay to do.

But if you can it's usually best to pay your car insurance yearly or at least every 6 months if your car insurance company allows that.

I pay my car insurance yearly in one payment as I save around $300.00 by doing so which makes it worth it.

I just put the money aside each month that I would be paying monthly to the car insurance company and then write the car insurance company a check each year when the car insurance becomes due.

Car insurance doesn't affect your credit score when paying monthly or yearly so it doesn't matter.

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