Loan Protection: Using it affect Credit Rating?

[taxedparent]

Hi all

My partner has monthly loan outgoings. She was made redundant and over a 3 month period paid for the loan from her unemployment benefit.

She has loan protection which cover redundancy but we didn't use it as we thought it would affect her credit rating in future.

Im starting to think that this in itself sounds silly, that she would pay for protection and then be penalised for using the protection. So I have two questions really:

1 Does using loan protection affect credit rating
2 Can we go back into the past and claim the protection on those 3 months?

Any help much appreciated, tried searching for answers already but didn't turn up anything of value

TaxedParent

 

[ClubMan]

1 Does using loan protection affect credit rating

I very much doubt it - especially since the insurance cover is specifically to cover loan repayments in certain circumstances and will usually (as far as I know) be underwritten by some company other than the lender.

2 Can we go back into the past and claim the protection on those 3 months?

Doubt it too but check the terms & conditions of your insurance policy.