Does accepting payment protection increase your chances of getting a loan?

[Stella66]

I was just wandering if this is the case.Does one get some extra points when you choose a payment protection plan?

[CheekyChops]

It shouldn't be the case but at the bank I used to work for, there were occasions when they would only grant a loan if the payment insurance was taken at the same time.

[Oneeyedvic]

"It shouldn't be the case ..."

In fact this is totally illegal.

Honest answer is that it may improve your chances - easiest thing to do is to take it out and then cancel it once you have the money. Under FSA regulations you have a cooling off period for all types of insurance (including this)

[tigerthecat]

have a look at money saving expert . com and make sure you are getting the cheapest product.

[Sammy Snake]

Oneeyedvic, I don't know whether it is illegal or not but it definately went on in the high street bank I worked for up.

[les saisies]

Definately helps.

What you do is agree to take the protection plan which helps when the loan is being underwritten. When you have the OK ,sign the papers and get the money and then cancel the insurance within the 10 day cooling off period if you wish.

Once you have the money there is little they can do but you MUST do it within the 10 day period. Only you can decide though if it is a good idea or not.

[oldhenry]

it will increase your chances of being poorer and helping banks to get mighty rich!