People in different stages of their lives have different goals for their credit. Young people want their credit profile to be in good shape so that they can make important purchases without any hassle. On the other hand, older people are more concerned about being able to pay down their debt and retire comfortably.
So, the big question is, whether or not your age affects your credit score.
The answer is yes and no.
What is a Credit Score?
A credit score is the essence of your entire financial life. If your entire financial life can be boiled down to one number, it is your credit score. While it looks like a seemingly harmless three-digit number, it can affect all your present and future financial decisions. Whether you want to buy a house or rent an apartment, or even go for a credit card, your credit score is the first thing that will be noticed by the banks or lending institutions. This means that all your financial decisions will come down to this one number— your credit score.
Even though reducing all your borrowing history to a single number isn’t a good idea, creditors do take it very seriously. With a poor credit score comes a host of problems that wouldn’t be there if you had a good credit score. From high interest rates to disapproval of your loan, there is a lot that comes with a poor credit score.
Your Age and Credit Score
The million-dollar question is, in addition to many other factors, does your age also affect your credit score?
There are many different studies that have shown that different generations tend to have different habits when it comes to money. The generations that have lived through the depression phase will have entirely different spending habits as compared to the generation that lives in the era where they ‘have it all’. Thus, the conditions and financial era you are living in has a direct impact on how you deal with your money.
However, at the same time, it is found that some good trends and habits tend to run down through generations. Thus, if someone has a frugal family who has always paid things on time or upfront, it is highly likely that you may take on some of these healthy habits.
So, it basically differs from person to person.
Money Habits and Credit Score
It is important to note that our habits around money have a direct impact on our credit scores. There are three kinds of people in this world; the ones who are savers, the ones who are spenders, and the ones in between these categories. There are people who buy things on a whim, and then there are the ones who wait for them to go on sale so that they can purchase them while also saving some money.
Do you ensure that you have paid your bills before you go on and spend your money on fun activities?
Your spending habits reflect your credit score. The careful spenders will definitely have a better credit score because they’ve got their finances under control. On the other hand, the people who just spend on anything and everything without caring about whether they have cleared their outstanding bills are the ones who may have to face problems later on with their credit score.
Improving Your Credit Score
If you have a bad credit score, you have to be serious about answering all these questions that we have mentioned above. These will help you improve your credit score, especially if your credit score is bad because of your habits around money. It may also be the case that your credit score is poor because of an administration error. In this case, you need to get help from a credit repair service that will go through your credit report and check it for errors. You can then report these errors to the concerned authorities and get your credit score revised by them.
It is important to understand that your credit score is going to dictate a lot of your financial decisions in the present and the future. Therefore, it is important not to ignore your credit score, especially if it is poor. If you think you haven’t done anything wrong that led to this credit score, then you should definitely get it checked by a credit repair company.
Set Realistic Goals
If you have a poor credit score, it is important to set realistic goals. You may have to make some really tough decisions if you want to improve your credit score. You will have to change your spending habits and will have to decide what you need to spend money on now versus later when things are looking better for your score.
It is also important to consider what money habits you will be passing on to your future generations. Your habits can be passed down through your family members just as easily as your DNA. Thus, you should be careful about your money habits so that future generations can learn from you as well.
Assess your money spending habits and ask yourself if they have ever impacted your score. If the answer comes out in the positive, it is time to sit and think about how you can change these habits. Have a conversation with your family about changing these money spending habits. Seek support when you think you need it. There are many experts who can help you make your money spending habits better. Talk to them if you think you need help. Set a plan and work on it as a family to improve your credit score.
If you think there is some error in your credit score, you can always ask us for help. Your Rocket Credit has been helping people with the credit report repair. We are one the best credit repair companies that not only repair your credit report but also educate you on how to keep things steady and under control.
Get in touch with us at 830-822-2436 to get started.