As students across the UK prepare to advance in their educational pursuits, whether transitioning to college or university, new insights have revealed the significant impact that poor credit can have on their lives.
It is vital for students and their families to comprehend the financial landscape and take proactive measures to manage their credit scores effectively.
Many UK students graduate with a heavy burden of debt due to tuition fees and living expenses, with the Student Loans Company recently disclosing that graduates in England leave university with an average debt of £44,940. This level of debt can negatively impact their credit ratings, making it harder to secure affordable credit in the future.
Lewis Camilleri, Founder and CEO of Boshhh, remarked: “The financial pressures facing students today are immense, and poor credit can exacerbate these difficulties. It’s essential for students to be aware of their financial situation and take proactive steps to improve their credit ratings. By understanding and addressing these issues early, students can pave the way for a more secure financial future.”
Students with poor credit ratings often find it challenging to obtain low-interest loans or credit cards and may have to rely on high-interest payday loans, which can further strain their financial situation.
Poor credit can also be a significant hurdle when renting accommodation, as many landlords and letting agencies conduct credit checks and may decline applicants with low scores, restricting students’ housing options. Additionally, some employers, particularly in the financial industry, perform credit checks during the recruitment process, potentially limiting employment opportunities for students, especially in roles that require financial responsibility. The burden of managing poor credit can add considerable stress to students’ lives, affecting their mental health and academic performance.
However, despite these challenges, students should be aware that there are ways to improve their credit scores and access better financial opportunities. Consistently paying bills on time, regularly reviewing credit reports, using credit judiciously by keeping balances low, and avoiding unnecessary debt can help build a healthier credit profile.
Lewis added: “By taking proactive steps now, students can mitigate the impact of poor credit and ensure better financial stability.”
Boshhh is dedicated to building brighter financial futures, offering the world’s fastest credit builder and the only credit-building phone network. Customers benefit from access to a detailed 1800-point credit file, enabling them to closely monitor and manage their credit score, along with receiving tips and guidance for boosting credit scores.
For more information about Boshhh, visit Boshhh https://boshhh.com/
