Get your credit score right from the start
As we enter adulthood, we may have to apply for credit to help us get through life in a comfortable way.
When we enter adult life, usually when we leave high school, we need to start preparations to take our next step in life in the best way possible. And as we enter that stage of life where we take on our own financial responsibilities, we sometimes need to make the decision to apply for credit loans to help us get through life, and usually that means building and maintaining a healthy credit score.
Here are some steps provided by TransUnion, that you need to know as you enter each stage of your life:
•Early in adulthood, you’re figuring out what your next step in life after high school will be, and how much it will cost. That’s when you should be finding out how credit scores work, and how to budget for student life.
•By the time you enter college or university, you’re focused on student loans, bank accounts (savings or credit cards) and retail accounts (cellphone or clothing). This is the time to start looking at your options, build your credit score, maintain low credit limits, and avoid high credit loans.
•As you move into your career, things really ramp up. Now you’re dealing with medical aid, retirement annuity/ pension fund contributions, post-graduate tuition fees, entry-level car and insurance, personal loans and more. You might also need to take out a home loan, insurance and budget for household goods. Now’s the time to maintain a healthy budget and save for unforeseen expenses, make well-researched investment and loan decisions, improve your credit score by paying accounts on time/ in full, and protect yourself from identity theft.
•After your studies, you might decide to settle down and build a stable life. By this time your focus should be on maintaining a stable budget and saving for a rainy day. You can also learn and understand how your partner’s credit score affects yours and ensure that your credit score stays healthy by paying fees, policies and credit cards on time and in full.
•Sooner than you think, it will be time to make the choice of how and when you’re going to retire. Now you will find new things to deal with, like long-term medical aid and insurance, including dread and critical diseases, and everyday expenses. It remains important to plan and manage your estate and its finances, not take on unnecessary loans and pay accounts and policies on time and in full.
