For a lot of people, improving their credit score isn’t something that will cross their minds until it comes to borrowing a large amount of money. Usually this will be to buy a house or get a car on finance, yet credit checks are used for smaller, everyday situations such as taking out a new mobile phone contract.

Leaving it to the last minute to focus on your credit score can be too late in many cases. But when should we be thinking about improving it?

When Should You Start to Think About Improving Your Credit Score

Early Learning

There is a strong argument that greater financial education needs to be provided in schools and especially university, when students begin borrowing for the first time with student loans. Only when you begin borrowing and making repayments on loans and credit cards will you start to affect your credit score, but with many youngsters having phone contracts, this can have an impact too. Learning the importance of meeting payment deadlines from an early age should put many in good stead to build a strong credit score.   

The Sooner the Better

Especially when you reach university and/or your later teenage years, this is a time when some may take out a credit card. In order to get a credit card in the first place you’ll need a decent credit score, while how you use it will greatly affect its future. As this may be your first instance of borrowing, being aware of the impact of your spending habits is vital.

Starting a Family

Starting a family is most certainly an eventful period in anyone’s life and managing finances during this time is going to be a challenge as many other routines and habits are altered. Like with any major life event, planning ahead for all possibilities is a wise move. You may possibly need funds to help with any of these changes, whether predictable or unexpected and a good credit score is essential to make this possible. Building up a good credit score takes time though, so you may need to plan in advance ways to make sure it’s as strong as possible before starting a family.

Buying a House

Probably the biggest purchases most people will make is buying a house, flat or any other type of property. Not only do you need to spend time saving up for a deposit, but building up a good credit score for a mortgage is also essential. From the first time you start borrowing you need to think about your credit score, as it can take a couple of years of borrowing and meeting repayments to get this in a good place for access to the best mortgage deals.

Essentially, the earlier you think about your credit score the better, especially if you want access to a large amount of funds for various purposes in the future.

Article posted in Credit Cards and Debt, Debt

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