Your days at university might be coming to an end, and that can mean a lot of big life changes. Whether you’re looking to set up a new bank account or even buy your first home, managing your credit score can be very important. Get your credit score today to keep on top of things.
Your credit score is waiting
Even if you haven’t taken out a personal loan or mortgage, you have probably established a credit history. Your current account, any savings accounts, and credit cards all appear on your credit report. Certain student loans will also appear on your credit report, but only if you took them out before 1998 or have had a county court judgement for lack of payment. If you have a contract mobile phone or other store credit, these show up, too.
Whether you know you have a lot of credit history or know you have none, checking your credit report after you finish university will give you a baseline. By seeing where you are at when you start out in the world, you can see how you are able to improve over time.
Why you need to check your credit report
Checking your credit report is essential before any big application, but it can also be worth doing a regular check every year. This gives you the chance to correct any errors before they give you a problem. You’ll also be able to see just how lenders see you and what you might need to do to improve your credit rating.
How to improve your score
If you’ve proudly stayed out of debt throughout university, you might wonder why your credit score is low. Unfortunately, no credit does not equal good credit. Lenders will look at how much risk you pose were they to give you a loan (whether this is in the form of a mortgage, credit card, or the latest iPhone). Having a credit history will show them how you have managed credit in the past. Without a history, they don’t know how to predict what you’ll do with the credit they give you, making them less inclined to offer you the best terms.
This doesn’t mean you should rush out and get a bunch of credit cards, though. Instead, look at getting one or two things on your credit report and keeping up with regular, on-time payments.
Another simple step to take is to make sure you are on the electoral roll. If you are moving to a new location after university, make this one of the first things you do when you have your new address. Don’t wait for a reminder to come through the post, either. The electoral roll is an important way banks and other lenders check your identity and address, so if you’re missing there, or showing up with a different address, you will struggle to get good credit offers.
With so much changing in your life as you finish university, it can be easy to overlook your credit score. However, keeping on top of your credit can make things much better for you as you embark on this new chapter of your life.