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CREDIT SCORES EXPLAINED 
(What they mean, why they matter and the reason you should ALWAYS monitor yours)
THREAD BELOW
(What they mean, why they matter and the reason you should ALWAYS monitor yours)
THREAD BELOW
Credit scores/ratings are something that most have heard of yet so many young people havenât bothered to discover their own
If youâre unsure on what it is and why it should be a major concern of yours then keep reading!
If youâre unsure on what it is and why it should be a major concern of yours then keep reading!
CREDIT SCORE: This is a rating that is used by creditors such as banks/financial lenders to determine whether or not you qualify for loans/credit and how much
Any time you open up an account or even take out a phone contract a credit check is run to find out your score!
Any time you open up an account or even take out a phone contract a credit check is run to find out your score!
Every company has their own rating systems and all have different criterias so there is no âone size fits allâ when it comes to credit scores
The best thing you can do is focus on getting it as high as possible!
The best thing you can do is focus on getting it as high as possible!
So many people dismiss this topic all together until they walk into Apple looking to finance the new iPhone 11 Pro Max and find out that their application has been rejected likely to poor credit ratings
Want to prevent this? Letâs look into what can build up your score!
Want to prevent this? Letâs look into what can build up your score!
1. PAY YOUR BILLS ON TIME
Sounds silly but consistent late payment on your bills can really harm your credit score
Phone bill ÂŁ20 higher this month than it was last? You may choose to stick it to the man and not pay but it only hurts you!
Pay it now and dispute it later!
Sounds silly but consistent late payment on your bills can really harm your credit score
Phone bill ÂŁ20 higher this month than it was last? You may choose to stick it to the man and not pay but it only hurts you!
Pay it now and dispute it later!
2. GET A CREDIT CARD
Now I know a lot of people have their own feelings towards this so only do this if you feel comfortable
Using a credit card for purchases and making regular repayments can really benefit your score!
CONTD
Now I know a lot of people have their own feelings towards this so only do this if you feel comfortable
Using a credit card for purchases and making regular repayments can really benefit your score!
CONTD
A smart way to use credit cards is to use them for big purchases that you ALREADY have the money for and repay either instantly or when your next statement comes
Credit Cards offer an extra layer of buyer protection plus you look super reliable to lenders!
Credit Cards offer an extra layer of buyer protection plus you look super reliable to lenders!
3. CRUNCH THOSE DEBTS
Weâve all made mistakes and overspent where we shouldnât have but make an active effort to crunch those debts!
Even on part time wages, work out how much you can put aside every month to tackle your debts and make regular payments to them!
Weâve all made mistakes and overspent where we shouldnât have but make an active effort to crunch those debts!
Even on part time wages, work out how much you can put aside every month to tackle your debts and make regular payments to them!
4. PAY OFF TWICE
This is such a major code on the cheat manual, pay off your debts twice each month!
If youâve worked out that youâre setting aside ÂŁ100 a month to pay your debts
Pay ÂŁ50 at the beginning and the remainder 14 days later
CONTD
This is such a major code on the cheat manual, pay off your debts twice each month!
If youâve worked out that youâre setting aside ÂŁ100 a month to pay your debts
Pay ÂŁ50 at the beginning and the remainder 14 days later
CONTD
Even though youâre paying the same amount, the splitting up of these payments give the illusion that youâre more reliable at making repayments and reflect positively on your credit score!
Itâs a no brainer!
Itâs a no brainer!
5. GET ON THE ELECTORAL ROLL
Aka register to vote! Itâs much harder for you to gain credit if lenders have no idea who you are or are unable to verify who you are!
If you want to check and see if youâre registered, have a google or go on your local councilâs site!
Aka register to vote! Itâs much harder for you to gain credit if lenders have no idea who you are or are unable to verify who you are!
If you want to check and see if youâre registered, have a google or go on your local councilâs site!
6. SET UP DIRECT DEBITS
Mama still pays your phone bills? If youâre one of the few lucky ones to still have that be you then as much as itâs great, youâre missing out on building credit!
Having direct debits whether it be gym memberships or phone bills can help raise that score
Mama still pays your phone bills? If youâre one of the few lucky ones to still have that be you then as much as itâs great, youâre missing out on building credit!
Having direct debits whether it be gym memberships or phone bills can help raise that score
HOW DOES A BAD SCORE AFFECT ME?
If your score isnât up to scratch, it can hinder you from:
⢠Mortgage applications
⢠Credit cards
⢠Loans
⢠Phone contracts
⢠Car insurance
⢠Home insurance
All of which are pretty significant if not now then in the future
If your score isnât up to scratch, it can hinder you from:
⢠Mortgage applications
⢠Credit cards
⢠Loans
⢠Phone contracts
⢠Car insurance
⢠Home insurance
All of which are pretty significant if not now then in the future
If you have/have had any kind of fraudulent activities take place on your accounts, that could also be detrimental to your score
If that is the case then something called a CIFAS will be placed on your file
If that is the case then something called a CIFAS will be placed on your file
It is super important to check your file regularly because you could have a CIFAS or a different alert on your file hindering you from taking out credit which isnât even your fault
If you find yourself in that situation, contact your bank!
If you find yourself in that situation, contact your bank!
HOW TO CHECK YOUR SCORE
The app Totally Money is great as it gives you an up to date score, allows you to see if any checks have been made on your account and what, if any, alerts are on your account
Itâs also completely free to use!
The app Totally Money is great as it gives you an up to date score, allows you to see if any checks have been made on your account and what, if any, alerts are on your account
Itâs also completely free to use!
Credit Karma is also another completely free app that allows you to check your score and gives you tips to help build up your credit score
It will also alert you to any changes that may occur on your credit file
It will also alert you to any changes that may occur on your credit file
There are plenty of different websites too such as Experian which allow you to view your credit file free of charge
Pick what works best for you!
Pick what works best for you!
If you have any other helpful tips to drop then drop them below!
You donât want to jeopardise your future by allowing bad credit to determine your future so be a forwards thinker and grab a hold of your future!
Hereâs to creating a successful future!
Hereâs to creating a successful future!
