How to Build Credit in Your 20’s

 Your school years might be over, but there is one grade you still want to work hard for… your credit score.
 
If you are just starting to build credit, you may find yourself at one of two extremes: struggling to get past an almost non-existent credit history or using your credit card excessively thinking you will worry about it later. While opposite ends of the spectrum both can hinder your credit score.
 
Building a solid credit history is essential to qualifying for a mortgage, auto loan and credit scores may be used by landlords and even potential employers.  In addition, without credit it will be very hard to qualify for a decent credit card.
 
Here are 4 ways to build your credit:
 

1) Don’t spend too much

You landed your first job and might even have money deposited into your account twice a month…but go slow spending it.  You want to start building up a cash reserve, so figure out how much you can live on and save the rest. 

2) Pay your students loans but don’t worry about paying them off
Typically, student loans have low interest rates so paying them off quickly won’t save you a ton of money.  Stay current on your payments but focus on putting money aside for an emergency fund or retirement.
 

3) Think about the future (yes, retirement is a long ways away)

Saving even a little in your 20’s can make a big difference later on in life.  If your company has a 401k plan, make sure to participate. Try to place a minimum of 10% of your pre-tax salary into this account.

4) Create a healthy credit score

Do your homework and find a starter credit card account to start establishing a credit history. Spend a little each month and pay your balance in full. By making payments on-time you are proving yourself to lenders. 

 
The decisions you make in your 20’s about money could pave the way to a lifetime of financial health.
 
Have questions?  
 
Reach out to our team of experts at asktheexpert@thdcreditconsulting.com.

Helping You Pay Bills On Time Every Time!

Dudatez (pronounced do͞o-dāts) is now available in the app store.   

 

What can Dudatez do for you?

– Manage all your bills, bank and credit card accounts.

– Set reminders to pay your bills.

– Keep track of all your accounts and due dates in one place.

– Have a credit question?  Ask a credit expert a question right from the app!

Dudatez is the solution that can prevent people from ever

being 30-day delinquent again!

 

www.dudatez.com

Never have a 30 day late on your credit report again.

Today I am thrilled to announce a new, upcoming app called 

 

dudatez

 

dudatez is a bill management app that will give you direct access to all your accounts, in one place. You will be able to pay your bills anywhere and anytime, from your iOS device (Android coming soon). 

Never be 30 days late again, no more late payment fees and no more negative marks on your credit report.

I have been helping people with their credit for over 10 years and without a doubt paying late is a very dangerous credit habit that I see too often. In fact, a single late payment can drop your credit score anywhere from 60 to 110 points.

Have you ever been on vacation or a business trip and forgot to pay your Visa? Perhaps you are just so busy with life that a stack of bills has piled up on your desk, causing you to miss a deadline. Next thing you know, you have a late fee and a blemish on your credit that will stay there for 7 years.  

dudatez was born with the idea of helping people pay on time, every time. 

I will share more when the app rolls out this summer. In the meantime, I just wanted to tell you its key features:

  • Easy access to view all your bank accounts and bills from a single app. 
  • Pay your bills from anywhere and at anytime.
  • Direct contact with creditors and make a payment instantly.
  • Receive reminder notifications prior to your bills coming due. 
  • Never get a 30 day late on your credit report. 

dutatez is simple. It is an app that stays on top of your bills and money for you!  Just set it up once and the app goes to work- proactively monitoring your bank accounts and credit cards, all in one place.

There is MUCH more I want to share. But I won’t overload you for today! 

If you want to hear more about dudatez and be notified when the app launches this summer, click HERE.