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Short Term Loan News

Money tips and MYJAR news

Money Tips: Building a Credit History as a Young Consumer

It can be quite overwhelming leaving university and entering the world of work after spending the last few years studying and socialising in equal measures. However, this is actually a vital time to get your personal finances in order.

Getting to Grip With Your Finances

One important aspect to be aware of (and that you may not have put much thought to as yet!) is your credit rating. Your credit history is made up of financial and personal information about you and is stored by credit reference agencies. Their records are designed to do two things: check your identity, and determine whether you meet your financial commitments on time. 

The information that credit reference agencies hold includes personal details from the electoral roll, information from banks, building societies and other financial services companies and utility providers regarding borrowing and, most importantly, any missed payments, including on your credit card and mobile phone contracts.

This information is used by companies like banks and lenders to determine whether or not you're a good candidate for a loan, bank account, phone contract, etc.

Keeping on Track of Your Credit Rating

It's important to assess your credit report as soon as you’re financially independent. This means you can ensure your credit rating is healthy when applying for new credit cards, loans or a mortgage. If you have a poor credit rating, your may be turned down when making these kind of applications in the future.

In order for lenders to approve applications, be it for a loan or credit card, they want to see that you're trustworthy and that you have a good history of paying your financial commitments on time.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk