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How Under-30s are Spoiling Their Credit Score Spoiling Their Credit Score

Credit Score

Even though having a credit card can be extremely handy, when the time comes that you have to pay for that big item or make a massive spend for something important, it’s often not the smartest move you could make.

The majority of people out there often overlook this fact – believe it or not. That convenient bit of plastic in your hand that allows you to spend, spend, spend is something that you will eventually have to pay back!

And the buck doesn’t stop there. Those shiny little credit cards can really affect your future negatively too if you’re not careful.

When it comes to your credit score, having a really good or bad score can be the difference between getting that all-important mortgage, that life-changing loan, or indeed, your next big break in your career. Did you know that the under-30s age-range are in fact the biggest culprits of being naive when it comes to their finances?

Quite shockingly, some new research released from SimplePayday, who offer small payday loans, showed us that actually, 75% of the under-30 age group have no clue whatsoever what their credit score was at the time of getting that first credit card.

Are you financially savvy?

Which, isn’t surprising to many people that are financially savvy already. And another thing to note here is that a staggering one-fifth of that age group will use their main credit card to pay for their next holiday.

So what are some of the repercussions of credit card spending? 20% of the people who amassed a debt on credit cards actually had to settle back in with their parents to enable them to clear their debts. So what can we all do to keep our finances in better order?

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Let’s take a look at a few handy tips that are guaranteed to boost your credit rating:

  • Make sure you register to vote
  • Streamline your bank accounts by closing any that are inactive (keeping accounts that are dormant in your name can be bad for your credit rating)
  • Ensure that you check your real credit rating regularly
  • Always investigate fully into any tempting credit offer that you see. There’s usually a catch somewhere in there and you should find out what it is
  • Be aware that quite often, even small debts can become big problems! Wipe your small debts now and get in control of your life today
  • It’s definitely not just loans and credit cards alone that often contribute information towards your next credit report: energy and broadband providers do too

You can manage your money in different ways. The best way to pick the best money management tool is to choose a system that you are more than willing to utilize. Should your money management tool be difficult to understand or is inconvenient or time-consuming, chances are high that you will not stick to it. Managing personal expenses is akin to dieting in the sense that you want to make the process as painless as possible for yourself.

Effective tools for money management

The pen and paper budget happens to be the most basic of all money management tools. Using these, it will be possible for you to create a list of monthly bills to be deducted from your monthly income. There are templates printable from the Internet that are meant to help you get started.

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Those who follow the advice of personal finance guru Dave Ramsey recommend cash based envelope system meant for effective money management. Those who are accustomed to making use of debit cards for most of their spending habits find an envelope system that takes a bit of getting used to.

Visual demonstration about how you tend to spend your money proves handy particularly for those who are shopaholics. If you plan to use envelopes as a money management tool, you are well advised to have individual envelopes for categories that include clothing, food, health care expenses, gas, and not to mention, family entertainment.

If you are the type who prefers a high-tech solution for keeping track of money, you are well advised to try making use of personal finance software for money management. You can use Microsoft Money and Quicken. A bit of learning curve is an integral part of programs like these. They have advanced features that will surely make your efforts worthwhile if you are also attempting to track your investment plan for achievement of long-term financial goals or to keep track of records as part of your home-based business.

In case you are someone always on the move and are in need of a convenient way to track your spending behavior, you can utilize numerous money management tools that are available in your iPhone or Blackberry.

You will surely be sufficiently familiarized about what a money management tool is by now. You will surely have no doubt that their relevance in controlling your spending cannot be ignored. Use the ones in your phone to manage your money effectively.

About author

Sujain Thomas is a leading blog writer and expert travel photographer. She has written numerous articles and blog posts on topics related to Travel, Food, Lifestyle, Home Improvement and Photography etc.
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