Who doesn’t want a student credit card, contract phone, student loan and so many more banking products to enhance your student life? It’s hard to say no when you’re targeted and lured with consumerism on every side. After all, they are only cards to allow you to buy on credit, and if all else fails, you could always ask your folks to cough up. Unfortunately, the real world doesn’t quite work like that, particularly if you don’t have a good credit score.
Start building your credit profile
There’s no other way of saying this: it’s time to wake up and to start paying attention to your money matters. Binging off mom and dad may seem convenient, but this may not teach you about finance and budgeting. You’ve got to start making the most out of your debit orders by paying on time so that you can build a good credit profile for yourself and set a firm financial foundation.
Your credit score could get in the way of securing employment
Just in case you’re not convinced that financial accountability and managing your money are vital life skills; check this out. Depending on your industry and the job you are applying for, a poor credit rating could cost you your dream job someday when you’re job hunting. Your future employer may check out your credit profile – and missed payments, debt, and the mismanagement of your money is seen as a risk that dampens your employment eligibility.
The importance of generating a good credit record
Furthermore, the day you move out of your student digz and want to buy your own crib, a poor credit rating score could cause your home loan application to be rejected or affect your mortgage rates. There are also negative impacts even if you only want to rent a place because most letting agents will examine your credit score to assess your eligibility.
That credit score also influences your insurance premiums for your set of wheels or digz. Oh yes, and a bad credit record can also lead to you being declined future credit cards because you’re brandished as a high-risk individual.
Whichever way you look at it, you’ve got to start generating a good credit rating score. Perhaps that can mean saving more, getting student jobs or simply delaying the urge for instant gratification that having credit offers you.
The time to proactively contribute to your credit rating is now. Seriously, your future self may thank you for it. We believe in you. You can do it!