Calling all Students and Grads: Engage With Your Finances and Credit Scores Now!

Students and grads, here are 5 quick reasons why finances and credit scores should be at the top of your priority list in 2022!
Credit Score

As a student or recent grad, thinking about finances and credit scores is probably not at the top of your priority list. It’s definitely the last topic you’d want to talk about with your mates at the pub! It doesn’t help as well that universities offer little to no advice to young people about finances and credit.

And with the amount of misinformation flying around, here at Pave we want to provide you with five reasons why you should get on top of your finances and start boosting your credit score right now. 

1. Improve Your Money Management Skills

Understanding your finances and seeking to improve your credit score from the early stages of your adult life is important. Money management skills are essential to learn as you become financially independent and embark on your chosen career path.

One of the main benefits of building credit while at university is that it teaches you how to manage your money. In particular you will learn the fine art of delaying gratification. This is a trait that will greatly assist you later in life. By improving your money management skills, you could learn to:

  • Stay on top of your monthly budget
  • Spot where to make savings
  • Borrow wisely and make your repayments on time
  • Make sure you don’t enter into that dreaded overdraft 
Quick Tip: Save on those expensive Starbucks coffees by investing in a thermos and making coffee at home.

2. Gain Access to Better Borrowing Options in the Future

To access the best loans, or credit cards, having a good credit score is essential. If your credit score is low, you will most likely be offered a higher interest rate or a smaller credit card limit. So, it could cost you more to borrow money in the future and you could be restricted in how much you are able to borrow. This is because a poor credit score negatively impacts the confidence of lenders who could consider you a high risk borrower. 

Having a good credit score makes shopping around and comparing rates much easier and more accessible. You’ll find better terms of borrowing, higher credit limit amounts and you could be able to finance those big purchases with ease.

Read more about How to Get Accepted for a Loan in the UK.

3. Increase Your Housing Options

Whilst buying a house will most likely not be at the top of your priorities right now, having a poor credit score does affect your ability to rent. When applying to rent a flat or a house, the landlord could ask for evidence that you are able to pay the rent in full and on time. Having a good credit score, a history of on-time payments and little-to-no monthly debt is paramount.

What’s more, you could potentially save on your rental security deposit if you have a higher credit score. This is because landlords favour financially stable and reliable tenants.

Don’t let a poor credit score affect your chance of securing that dream flat or house you’ve been manifesting!

And if you’re lucky enough to be in a position to buy a house, getting your finances and credit score in order is vital. Mortgage lenders consider an individual with an adverse credit score to be a risk. As a result mortgage applications could be rejected and your dream house lost.

Even if the goal of home ownership seems a few years away, establishing responsible financial behaviour and building your credit history today will reap great benefits in the long-run.

For all you London-destined graduates, click here.

4. Reap Cashback and Reward Benefits

Looking after your finances doesn’t just come with long-term benefits, there are also short-term perks as well. Having a good credit score makes credit cards with great rewards more accessible.

For example, cashback credit cards pay you a percentage of the amount you spend on the card. Others offer you the ability to accumulate travel points and air miles, or vouchers for shops and supermarkets. Handy for those weekly Sainos trips!

So don’t miss out on the opportunity to earn potentially tens or even hundreds of pounds a year in credit card rewards!

5. Start at the Right Time

A major benefit of engaging with your finances and building credit at a young age is the possibility of getting a student credit card. There are numerous advantages in doing so. Not only can you start to improve your credit score through demonstrating reliable borrowing history, credit cards offer protection on your purchases and a valuable resource for emergency funds.

Bear in mind that providers will have different lending criteria, your application is not guaranteed to be successful. And always remember to use a credit card sensibly and make your repayments on time.

How To Start Now? 

Building credit isn’t a piece of cake. Fortunately, Pave exists. Pave is an award-winning credit builder app that actively works with you to help you build your credit score. No hard credit check required. In addition, Pave will help you keep on track of your finances by giving you personalised credit fixes, bill reminders and much more. For the price of a pint of Guinness a month, you can build your credit score and better manage your finances today. Find out more here.


Consider reading the 9 Brilliant Tips for Building Credit and Becoming Financially Fit & Beginner’s Guide to Building Credit the Right Way next.