Money Talks

Top tips for young people to maintain their credit rating for the future.

I know some of you may have done a few ‘AC’s’ in the past or were a bit reckless with the spending when you were younger. So we have created a list of a few tips that can help improve your credit rating.You may not feel like it is a big issue now whilst your young. however, when your older you may need to rely on credit more often.

Your credit rating is basically a score to show how well you are at paying money back to lenders. For example, if you defaulted on a previous payment this will affect your credit rating.

Here are some tips to take note of to improve your overall credit score.

1- Arrange all of your outgoing bills to be paid by direct debit, this will ensure that they are paid on time every month, which will help boost your rating.

2. Put your name on the electoral register, lenders like to see you on there for as long as possible.

3. Always read the terms and conditions when setting up a new credit agreement. Always check if there is anything that mentions any late payment fees etc.

4. Don’t change your current account too much, the longer you have had your bank account the better it shows on your credit report

5. If you have a credit card use it and pay it of quickly…. Only if you can trust yourself to manage your money effectively. This will demonstrate that you can manage your credit and pay your bills on time.

6. Don’t allow people to take out any credit in your name…. Trust us you do not want to have a county court judgement over your head.

7. Be aware that when you try to get credit in your name the lender will do a search on you. Too many searches will look bad on your credit file.

Try these tips out and good luck with your financial future guys😬

The Real Rise©