#YoungMoney - How you can build a solid credit record

Credit Card
Credit Card

“I will buy that pair of sneakers, because it is my money mum!” - Young Adult Proverb

After being able to set your own bedtime, being financially independent is one of the most exciting parts of growing up. Learning how to do this can be hella challenging. Building good credit is the gateway to adulthood. It will help you qualify for loans, auto insurance, rental applications and cell phone plans. It can affect whether you get a job and whether you can go on a date and say to the waiter, “put this on my card”.

It is actually easier than you think. A good credit record takes tons of factors into account: your complete credit, debt history, and your financial capabilities. A credit record gives creditors all the info they need about the risk associated with you. This ain’t no high risk, high reward situation fam.

HOLD UP, you need good credit… to get a credit card. BUT you have to have good credit… to get good credit. BUT to get good credit… you need good credit?

Relax, let me break this down for you: to qualify for credit you need a credit history. This means that you need to have had credit at some point, whether it be a store account or a loan. Providers judge your behaviours as it helps them assess your affordability.

Need some #LifeHacks? There are ways jump out of the loop and build a good credit record. Your friends down at Unlocked.Me are here to do you a solid, and guide you through this.

Here are a few tips to getting a good credit score:

What’s ya status?

Contact a credit bureau to check your credit record and score. You get one free credit check a year.

No one likes being extra!

Constantly assess your credit limits and monthly spending. Try and maintain a credit account with a 75% spend a month.

Stability, this is not a game of Jenga

Establishing stability and trustworthiness is important. Your job position and how long you have been there, as well as how often you move homes all factor into your credit rating.

“Yeah, thats in my name”

Put all your bills in your name and keeping proof of payment is an integral part of financial security today. If you pay on time you will build up trust and a good record.

Level up bros

Paying back more than the minimum amount expected is the best way to level up your credit score. Show the man that you are a responsible debtor who can more than cover their credit.

We are going to be running this place soon, we owe it to ourselves to be financially responsible. Know all of your options and obligations so that you have a good understanding of how you can have financial freedom.