As a young man when you move out of your home, you must learn how to manage your finances well. You should also be aware of the importance of credit scores too.
At a young age, if you are not very careful about managing your finances then soon after you get married and think of buying a home then you may face difficulty in getting your home loan.
Bright’s MoneyScience™, a patented system built on 34 algorithms studies your finances and makes smart credit card payments for you always on time, and always optimized to save you more on interest charges. Bright Credit Builder is a smart alternative and an easy way to boost your credit score. Bright Credit Builder focuses on and improves your credit utilization and payment history to help boost your credit score faster.
To start with you must know how to establish your credit. If you never have any credit then lenders may not offer you a loan. The following are a few ways to establish your credit:
- Become an authorized user and hold joint accounts
- Have a credit card
- Taking a small loan
- Finance for your car
Why you must be bothered about your credit score?
The following are a few methods your credit report will be used and can also impact your life even when you are a young adult:
Leasing an apartment
Your landlord may check your credit history when you sign your first lease deed for your postgrad apartment to guarantee that you pay your expenses on time. Your application may stand out if you have got good credit.
Applying for any job
When you apply for jobs, your potential employer may do a credit check to ensure that you are a responsible and trustworthy employee. This is true for jobs involving banking transactions.
Setting up utilities
Most utility businesses frequently request your Social Security Number to run a credit check on you. Having poor credit history may make it hard to obtain services, and a lack of credit history may necessitate the payment of a deposit.
Buying a car
You will need to get finance unless you are buying a car by paying. If you do not have any credit history, a creditworthy cosigner may be required to help you make the purchase. In case you have bad credit, you may be charged a very high-interest rate.
Getting a mobile phone
When you want to update your device, carriers will check your credit history to ensure that you will be able to pay your monthly bills.
Receiving a better rate of interest on loans
Credit card lenders and issuers will check your credit history when you apply for any credit card or any loan to evaluate your eligibility and also interest rate. If your credit score is higher, you are more likely to get approved for a credit card or loan, as well as earn a lower interest rate.
Being responsible about your credit score right from a young age can help you in the latter part of your life.