What is the point of this credit stuff??

So let’s get into it!

Why do you need to have good credit I hear you ask? What is all the fuss about? When I win the lottery I am not even going to need good credit…lol

Ok that last sentence was probably just me. Trust me I understand these questions all too well, I spent most of my 20s fighting against good credit and by that I mean I was just spending spending spending. I didn’t realise that everything I was doing financially was being recorded silently right under my nose. Every time I went for a new phone contract, every time I was splashing the credit and paying the minimum, every time I went into overdraft on my account because I just had to go to the 15th Party of The Year in a new dress…..

It was only when I wanted to buy my house that I was then asked about this weirdo called Credit Score. By then it was too late I had built bad financial habits and had a big badge of honour to represent it. My extremely low credit score.

So you have Experian and Equifax which are the main bureaus. Every time you get into a credit agreement those businesses will send that information to either Experian or Equifax, sometimes both. Your balances can be updated monthly, some companies only report after you fall behind in payments. You should check your report often to make sure everything reported is accurate.

So why is it important? Well all this information builds a picture of how good you are with managing money that was borrowed to you. Future lenders look at this history and then base their decisions on it. Decisions such as how much they should lend you and at what rate.

So all in all the better your score the better rates you are entitled to which can save you thousands of pounds. It is in your best interest to repair your credit or in other words increase your score.

You can do it!

Love Ya xx