Young urged to keep close watch on credit

Young people in the UK are at the most risk of harming their credit rating over the holiday season, new research has shown.

The nations 17-25 – year-olds are being urged to take care of their spending, and to bear their future credit ratings in mind when they compare credit cards.

Finance specialists have advised them to search the market and only make applications for the best rate or balance transfer deal that suits them.

The importance of always keeping up with monthly payments has been highlighted as this is especially important at a time of year when borrowers may be spending a lot and be tempted to miss payments.

Checking receipts against bank statements is also especially important at this time of year, when people are making many purchases and may not be keeping such a tight track of their outgoings.

“Christmas is a time when many people pay less attention to their finances than normal as family and other social commitments take over,” consumer affairs advisor Jill Stevens told MyFinances.

“But overspending, forgetting to make payments to credit cards and disposing of shopping receipts carelessly can all have a damaging effect on your creditworthiness.”

© Adfero Ltd

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