I’m ashamed to admit that I am pretty terrible with money. I have been ever since I went to university the first time around. It didn’t help that I was living in a really expensive city. I could barely afford to pay my rent with my student loan! Luckily, I managed to have a job for the three years I was at university which meant that I could afford to eat. Unfortunately, my boyfriend at the time didn’t have a job so I was feeding him too. I left university with not only my student debts, but a hefty overdraft and a credit card.
Now, six years later, I’m back at university doing a masters degree. I have another student loan. I’m living back in Winchester again where my rent is £500 a month for a room. I’m only feeding myself this time around, but it’s tough. I have a bad credit rating now, so applying for an overdraft is out of the question. I also definitely could not get anything on finance. This means that when I finish university and want to buy a car, I’ll have to pay for one outright.
Building up your credit score
In order to build my credit back up, I need to make sure I continue to pay off my debts. I also need to make sure I keep up the payments on my phone contract as missing one of them can affect your credit rating badly. When you’re in this situation, it’s also a good idea to get a credit card to help build up your credit rating, as long as you pay it off straight away. A lot of credit card companies won’t accept anyone with bad credit, however Vanquis are here to help. They offer credit cards with a limit from £150 to £1000 with flexible card repayment options. You can also manage your account online and via SMS.
Obviously, getting a credit card isn’t a great idea if you’re just going to spend on it and then make the minimum repayments. If you know that you will pay back the full amount at the end of each month, then it is a good idea to get one to build up your credit rating. It’s a good idea to have a credit card at home just in case of emergencies. I can’t tell you how many times I’ve ran out of money and have had to borrow off my parents until the next payday – that’s not what I want to be doing at 28!
Have you got a good credit score? How have you built yours up?