Credit Habits To Develop at 20

Credit Habits at 20 Teenage, it’s the age generally preferred for fun, enjoyment and living your life in craziest ways. But after teenage when you enter into twenties, it’s high time you need to start to plan your saving habits and credit tendency. You need to have an idea regarding your credit habits and mold it into right direction and make it stable if it’s not. Here are 5 simple ways of credit habits one should develop at their 20’s and maintain it lifetime.

  • Educate Yourself

Credit, it’s not such a thing with which you want to take a chance with or conduct experiment with. You become double sure with your credit related things. It’s like a cup of tea to kill your credit health rather than to improve or maintain it. You are availed with only one chance to build your credit history from scratch. Thus before starting up with your credit habits, it’s pretty much important to get proper knowledge and education regarding what factors to go in your credit score and how to read your credit report.

If you are reading this you must be encouraged to take the first step. However it’s very simple to get educated as internet offers you with all available information you want.  You should have information regarding ins and outs of your credit and also about personal finance. It’s not like you have to be some expert but have just that much education which can help you get a good start with your credit journey.

  • Monitor Your Credit

Having a track on your credit reports and scores could be beneficial to you in 2 ways. The first thing is that it gives you a good opportunity to learn how your credit reacts to different financial action.  Tracking your score helps you to see firsthand how it affects each time you do something credit related like applying for a new loan or paying down your balances. Second benefit you get from tracking your score is that you can detect fraud and errors on your report and act to it promptly.

Now you would be wondering how you would do this. It is very easy. You can get paid and free service that allows you to monitor your credit reports or scores. Just check whether it is free or payable. You can also get free copy of your credit report every year from

  • Build A Crisis Fund

As proved by the survey conducted by the February Bank rate, 21 percent of people in the age group of 18 to 29 years have more credit card debt than they have in their crisis fund. This is irrelevant and improper as financial emergency can occur anytime and you must have  savings for that emergency. If you don’t have such savings then it can cause trouble and can deteriorate your credit tendency.

You can create a crisis fund by putting aside a specific amount from your each pay and over a time it would be a good amount which can save you in trouble situations.

  • Pay Your Bills On Time

One of the best alternatives to build credit is timely payment. Your credit score is measured by repayment of debt in a timely manner. For calculating credit score, the most highly weighted factor is your on time payment percentage.  Just a single late payment can detain your credit health for years.

Generally people have a problem of forgetting their dates of payment. You can try out setting up calendar reminders to email or text themselves when credit cards due date is coming up. If you have several numbers of credit cards and have a problem keeping track of all of them, then you can fix a common date for all of them making it easier for you.  You can also enroll in autopay services. If none of these work out, you can pay your all bills on first day of every month.

  • Limit Your spending

The most difficult habit to cultivate among all of this is to limit your spending when you already know you have a good amount of income, you cannot resist yourself from limiting your spending. But you must be aware that loans and credit cards are not free money. You have to repay them back. Failure in repaying may result in suffering of your credit score.

You must be thinking how to limit spending? Before purchasing ask yourself a question do you really need it or without purchasing also it can work. This will help to reduce extra purchases.