Credit Score Tips for Millennials
According to Wallethub.com, the average credit score in the United States is between 669-699, which isn’t bad at all. Some people struggle with insufficient credit scores yearly. This makes it harder for them to buy cars, buy a home, and even worse, maintaining credit cards balances. I was pretty unfamiliar with credit scores and how they work, but my nana was able to educate me about the importance of maintaining an outstanding credit score.
We all know the feeling of wanting to buy that hot new item that just hit the shelves or that brand new car that’s been sitting and glistening at the car shop, or riding past a newly renovated and beautifully landscaped home.
It can be very enticing and tempting to splurge on things you want. Some may be able to, but then you have those like myself who want it right at that moment. Buying items at the moment can be fulfilling but can also tag along with some consequences if not done the correct way.
When purchasing with a credit card, it is recommended that sufficient funding covers the purchase ON TIME. Debt collectors are like little pests. If you don’t pay on time, they will continuously be on your case about it. The more you ignore it, the more it accumulates. Always be mindful of the things your purchase, sometimes you have to stop and ask yourself if you need it. I know sometimes we may get carried away and think we need something when we don’t. Not keeping track of your funds and spending habits eventually leads to debt. And an overdraft, which then leads to bad credit. Then finally leads to the limitation of necessities, such as buying a home or a car.
So here comes the big question that most people ask when it comes to credit scores: Do credit scores matter? The answer is yes — credit scores matter. If someone wanted to buy a home, the relator would consider credit because they want to make sure you are responsible enough to pay for your utilities. If they see that your credit score is relatively low, they may decline your request and move forward with someone that has better credit. The same aspect applies to vehicles. It all comes down to the seller making sure you are responsible enough to handle the payments. If they see that you have endless overdrafts and a credit score of five hundred because of Victoria Secret and H&M, they are going to assume that you are irresponsible when it comes to funding.
In some cases, there are car dealers’, real estate agents, and landlords that are willing to work with people. They take income and marital status into consideration, but for the most part, it is pretty rare. For those of you out there that are struggling with credit scores, here is a tip. PRIORITIZE. Prioritizing is probably one of the best things you can do when maintaining an excellent credit score. Whenever you’re out shopping, think about which is more important, three hundred dollars worth of Victoria Secret Pink hoodies and bralettes, or stashing that three hundred dollars into savings account for a home? Or how about a one hundred dollar overdraft of Fenty Beauty products or putting those one hundred dollars towards your car payment? It’s never too late to improve your credit score, always make sure you are focusing more on the needs than wants!