Plastic Not So Fantastic! Should We Worry About Our Credit Score?

by - 7/24/2019 04:43:00 AM

It can seem like one of those essential things in life that we need to know about, but what we end up doing is avoiding ever talking about it. Our credit score is one of those things that we can very easily bury our heads in the sand over. But when you want to make the big purchases in life, and find your dream home, perfect car, or even if you just want to redesign your bathroom but you don't have the funds, your credit score can seem like the obstacle standing in the way. But is it really something that we need to worry about?

Knowing What Affects Your Credit Score

Because it's such an intimidating thing at the outset, we can feel that we're not able to move without our credit score being affected negatively. This is not the case. It's far better if you understand the major issues that can affect your credit score. There are so many credit reports out there, but the major culprits are paying bills late, applying for too many credit cards, having too many open accounts, or if you've had any problems with the courts. Another problem in your credit score being impacted is if you take out too many credit cards. This is something that you need to be aware at the outset. So many people think that having a credit card is free money, when in fact; it's the equivalent of being given a loan, but the lender putting quite a hefty amount of interest on it!

Making Those Big Purchases

If you need to make big purchases in life, then when you should remember that you need a decent credit score in place. But there's always a way around the issue. If you're looking to buy a certain item, but you think that your credit score could get in the way, there are external companies that can provide loans. There are guarantor loans from Buddy Loans, where, if you are unable to repay the money, someone who is acting on behalf of you is liable for the money. But on the other hand, when you are looking to improve your credit score, it's about showing that you are responsible with money. It all depends on the purchase you want to make. Do you want to make it now, or do you have time to make yourself look better in the eyes of the lender?

Should we worry about a credit score? Technically, yes, but we have to look at it in terms of the big picture. If we're not making massive, life-changing purchases right now, then we can look to play the long game and build our credit score up. On the other hand, if you're looking to blow a lot of money on a holiday, you may want to think twice, especially if you want to make those important purchases. The big mistake that people make in their twenties is that they think they don't need to bother with those things just yet. But if you are considering joining the property ladder, buying a car, or even getting another credit card, you need to have your credit score at the back of your mind.

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