We have all been there when the washing machine has packed in halfway through the month, or your car is due a MOT and you haven’t budgeted for this monthly cost. Credit cards have quickly become the norm just like overdrafts most people are actually surprised if you don’t have one!
There are so many deals and cards out there its very difficult to know which one to get and if they are a good deal or not. Overdrafts are a tricky one as you never end up out of them it just all adds up to one figure that you have in your bank account, it can be easy to fall into the trap of always being in your overdraft and using that as income every month.
The same can be said for credit cards so many people rely on them and just say oh stick it on the credit card, this isn’t the best attitude to have, if you can’t afford it you shouldn’t really buy it unless of course, you do need it. I think credit cards are great for improving your credit score if used correctly and are very handy for emergencies, I wouldn’t start getting into the habit of relying on them as an income.
Payday loans are a good option for securing cash fast if like I said something in your household breaks and you quickly need the item replacing before payday arrives. Payday loans are quick and a very easy way to lend money, you can easily select the amount you wish to loan, once you have done this the website will calculate how long you can have the loan for and what the repayment amounts will be, they will also be able to tell you the interest amount you will pay back.
This is the interest they add on to the figure you are borrowing so try and find a low-interest rate but obviously, the rate all depends on how good your credit scoring is. When getting loans, credit cards, finance on a car or anything else valuable, or a mortgage the APR really does depend on how well your credit rating is, obviously having no credit at all isn’t going to give you a good score and having too much is also bad for your credit rating.
I would recommend having a credit card but just using it for like the weekly shop and then pay it back when you get paid, this will be good credit for your score. Make sure you don’t use the maximum on your credit card this will be bad for your credit rating, use 15% of the balance, make sure you keep up with the payments and never miss one or pay more than the minimum amount suggested.
Having a phone on contract is also good for your credit as long as you don’t miss the payments, as this is a loan as such and will be on your file will show as good credit as you pay it every month. Also, a good fact to know is that your student loan does not go on your credit file this is kept completely separate.
I use Experian to keep on track of my credit score you can use this website for free or you can pay the £14.99 a month and be able to see more on your file and how to approve the score. I also use Clear Score to check my credit score, this one can be slightly easier as this is an app you can download on your phone, this website is also free to use.
*Do you have a credit card? How did you get a better credit rating?
Lots Of Love,