Young borrowers concerned about credit score

Almost half (49%) of young adults are worried about their credit history stopping them from renting or buying a property, according to data from Loqbox, a financial service.

2,001 adults aged between 18 and 28 years took part in the research, which showed that the majority would look into their credit file only after their loan request had been declined – at which point, resolving the issue could take a long time.

According to the research, 15% of those aged 18-20 had already been declined for a personal loan, which increased to 28% for those aged 27-28 years old.

There are several ways you can ensure you have a good credit score; these include:

• Credit card
  Having a credit card is seen as positive by lenders, as it shows you have experience with credit, but only if it’s well managed. Paying off your balance each month improves your score.
  
  
• Electoral register
  Make sure you are on the electoral register at your current address. Lenders want to know who you are and where you live. You can do this online through your local council.
  
  
• What to avoid
  

• • Payday loans and 'buy now, pay later' schemes such as 'Klarna' show the lender that you could be unreliable at paying back the loan and are not looked upon favourably. 
  • Payments and withdrawals - Lenders don't like to see online betting and payments to 'payday loan' companies. Withdrawing cash from credit cards should also be avoided, as well as missed payments and unauthorised overdrafts.
  •  Loans, credit, car insurance, and mobile phone applications will leave a footprint on your credit file. Just be mindful about having too many.