How a Bad Credit Rating Can Affect You At All Ages.

There’s no denying that a bad credit rating isn’t a good thing for anyone. But it’s a lot more common than you might think – trying to make ends meet amongst today’s tough financial pressures is no easy task! If you find yourself facing a less than ideal credit rating, don’t panic – this can be a temporary situation. At City Finance we understand and are here to help – pop in and visit our friendly staff at your local branch for a chat and some helpful advice.

Footloose and fancy free – fun in your 20s

Your 20s are all about having fun and freedom. You’ve finished school, perhaps moved out of home, got yourself a job and are enjoying spending cash, but it’s easy to fall into some bad financial choices. Use your 20s to develop some good financial habits and take control of any financial hassles before you find yourself facing a bad credit rating.

•  Having and using credit isn’t a bad thing – in fact, by using it occasionally and always meeting your payments you’re actually helping to build yourself a good credit history. This will help when you apply for other small cash loans in the future.
• Don’t let friends and flat mates get you into financial trouble! Avoid having to take the rap for their share of an unpaid bill by keeping clear records, use an app such as Splitwise, to make it easy.
• Pay your bills in full and on time each month, or as much of them as you can. Making the minimum monthly payment is the worst way to pay off debt.

If you do run into trouble and end up with a bad credit rating, the impacts can include:

• finding it hard to successfully apply for credit, such as fast cash loans, or car finance in the future
• paying higher insurance premiums,
• difficulty getting a mobile phone contract

Your 30s – time to get a little serious?

Let the fun continue into your 30s, but this is the time when you might be looking at progressing your career, perhaps planning for a wedding, thinking about starting a family, or wanting to travel the world!

If your 20s were a bit of a financial disaster and your credit report isn’t looking great, the impacts can include:

• not having enough savings
• missing out on your dream wedding
• finding it hard to get a mortgage if you’re looking to buy a property
• paying excessively high insurance premiums

It’s worth making an effort to keep your credit history healthy, so that these problems don’t follow you through life.

Tackling financial challenges in your 40s

Life tends to get a little more complicated in your 40s. In the twenty years that have passed since your early twenties you may have had a family, married (and perhaps divorced), and bought and sold some assets such as a car and household items, and maybe even a property. It’s all about managing your repayments well and keeping your credit in check.

Having a bad credit rating in your 40s can make for some problems, including:

• difficulty getting finance for new purchases for your home, a car or holiday
• being subject to very high insurance premiums
• inability to build any savings or get a mortgage
• feeling like you can never get ahead and get on top of your finances

Your 50s, 60s and beyond – looking towards retirement

Retirement age seems a long way off when you’re 20, but as the saying goes, it’ll be here sooner than you think! Having a bad credit rating in your 50s and beyond can make it really hard for you to relax and enjoy this stage in life. Effects can include:

• not having enough money for your housing and care
• having to work until very late in life
• health issues brought about by financial stress

But remember, a bad credit rating can be temporary. There’s a number of ways you can clean up your credit rating, and at City Finance we understand and are here to help. Pop into your local branch for a chat and some helpful advice from our friendly staff.