When you leave University, it is likely that you would want to get some kind of loan at some point. Whether that is one to buy a house or a car, you will need to make sure that you have a good credit rating, as this means that you will be a much more attractive option for the lenders.
Don’t miss payments.
A lot of young people take out mobile phone contracts and then quickly tire of them. Many simply cancel their direct debit with their bank and stop paying, however this is not always the best thing to do. Although it is unlikely that you would be taken to court to recover such a small amount of money, there would be a black mark on your credit rating because you had missed payments and had essentially defaulted on debt. If you wish to cancel a mobile phone contract, it is vital that you do it properly, as this means that your rating would be much more likely to stay strong.
No debt isn’t always the best way.
Although you might think that it isn’t great to have debt at all, this is not always the case when you’re looking for another loan. One of the things that a credit company will be looking for when you apply is whether you are able to repay your debts, as this means that you are safer for them. If you have never had any debt to pay back, then there is a chance that your credit file would not show anything worth pursuing by the company.
The best thing to do in this case would be to get a credit card. If you use it every so often, and pay the balance in full each time you get a statement, this means that you would never have to pay any interest, yet your credit score would show that you are capable of making repayments. It is vital that you are strict with yourself if you choose to do this, as it can be very tempting indeed to use your full credit limit without thinking how you’re going to pay it back afterwards.
Take a look at your credit rating.
For a small amount of money, you should find that you are able to view your credit rating online. This means that you can see everything that is on file about you, and you would also be able to see if there is anything that might potentially be putting off any lenders that you are applying to. Occasionally, there can be mistakes made on files, and this means that there may be something counting against you that has nothing to do with you at all.
In general, it is much better to boost your credit score before you need to gain credit. This means that you are not going to be in the position where you’re panicking about not having enough money, and you should be able to get a loan whenever you happen to need one. This means that you can relax a little, knowing that you should never need to get into trouble with money.