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6 Mistakes You Do In Your 20s That Affect Your Credit Score

6 Mistakes You Do In Your 20s That Affect Your Credit Score

If you are wondering why your credit score is so low, you might want to take a look at your financial habits in your 20s. This is the time when many people make the biggest mistakes, which linger on for a long time. As you will see, most of the mistakes people make when they are young are due to lack of knowledge regarding the credit score. It’s important to inform yourself on what increases your score and what harms it, as soon as possible, so you can start building your score.

A couple of mistakes in your 20s, and you won’t be able to get a loan for a house later in life, so here are all the things that harm your score.

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1. Closing old cards

When you pay off your loan you will be tempted to close the credit line. Well, this is a huge mistake! Your credit score is being calculated based on the age of the credit lines and the debt-credit ratio. This means the older a credit line is, the better it is for your overall credit score.

If you want to increase your credit score, make sure you keep your credit cards open for as long as possible. This way, when you will apply for a loan, you will look more reliable, and the lenders will see that you are financially-wise.

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2. Helping friends

Probably the biggest mistake you can make is co-signing a loan. Many 20-somethings make this mistake, thinking they are helping their friends, but what are you doing? When you co-sign you accept to pay the loan if your friend won’t be able to pay it. When you think of it from this point, you’ll see it’s a bad idea from a financial point of view, friendship point of view and credit score point of view.

3. Maxing out the credits

Having multiple credit lines is good, but they have to be kept around 30% of your total credit limit. If you are maximizing your credit lines, your credit score will drop significantly. If you can’t stay below 30% of your maximum limit, you should call your oldest lender and ask for a limit increase.

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4. Not knowing what happens with your credit score

There are more and more hackers out there, and literally, anyone can become their victim. However, if you do check your credit score on a regular basis, you can spot unwanted activity on your accounts. Learn how to get a credit report on yourself and check it letter by letter – if you spot something suspicious, call the authorities. The number of people who don’t know how their credit score looks is overwhelming; don’t be one of them.

5. You apply for too many credit lines

Each time you apply for a new credit line you are lowering your credit score. This is because each time you apply for a new product, the lender is going to request a hard inquiry on your finances. Too many hard inquiries in less than one year are going to lower your score. To prevent this from happening carefully consider each new credit line and make sure you’re not applying for too many, too frequent.

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6. Delaying your payments

As you would expect, late payments are going to lower your credit score. Even if you are not penalized for this, your credit score will drop, so it’s a good idea to have reminders for your payments or automatize them.

As long as you know what are the things that harm your credit score, you are able to avoid them and work on increasing your score. Keeping an eye on your credit score also helps you stay safe from identity theft and fraud, which are now growing in frequency.

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Last Updated on June 1, 2020

10 Reasons Why Following Your Passion Is More Important Than Money

10 Reasons Why Following Your Passion Is More Important Than Money

Elite Daily have got some great points as to why you should chase down your dream job, regardless of how much the wage is. If you’re feeling unfulfilled in your career, maybe it’s because you’re on a path that doesn’t connect with your passion? Maybe it’s time to steer right off that road and take a different route:

Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.

However, this is inherently problematic as this mindset leads many people to stray down a path that doesn’t best suit them. When people choose their careers, they are sometimes blinded by money and so choose to follow the paper trail. Although money is great and can buy us all the things that will temporarily make us happy, no amount of money can buy time. Time is our most valuable asset and it is something, that while on this earth, we should spend most wisely. You shouldn’t feel like you’re mindlessly wasting your life away

This generation is particularly in trouble because jobs are scarce and many of us will be stuck doing jobs we hate just because we need money. Although this may be the right move for our careers now, this shouldn’t be something we do for the rest of our lives. it is best we search for something we are passionate about. Here are the 10 reasons why you should follow your passion and not the money.

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1. Working for money may seem like good enough motivation for one to keep at their career.

Every morning Monday through Friday you go to work 9 to 5 sitting their punching away the hours stressing about the work at hand. This is not a way to enjoy your life. Working for 8 hours a day 5 times a week at something that makes you miserable is not the way you live life to the fullest.

Many people who choose careers that don’t make them happy will tell you that they would all do it differently if they had the chance. You only have one life, so don’t waste it working somewhere you hate just because of the money.

2. You’re more passionate about the work you are doing.

There is nothing worse than having to wake up every morning during the week to mindlessly go do work you don’t even care about. However, this is never really an issue when you are passionate about the work you do. If you are not forced to work somewhere because of monetary constraint, you truly enjoy what you do and you never really work a day in your life.

3. You can relate more to the work and come up with better ideas.

Being forced to do work is one of the most draining experiences. While there are times at every job where you may feel the work may be draining and dull, you have to realize that not every day is going to be an enjoyable one. There are highs and lows, but when you are passionate about the work you you look past the dull days. Your creative process is also different. You are more inclined to come up with creative ideas when you like what you do.

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4. Work doesn’t feel like it’s forced upon you.

When you value money over your overall health and your passion, you will find yourself in an endless cycle of misery. Work no longer becomes a career or a journey, but more of a  taxing nuisance on your mind and body that has to get done.

Every day that you go to work with this mindset you begin to hate your job more and more. While many people feel that they must work hard to retire and have money to enjoy themselves, what’s the point of enjoying yourself in your later years when you spent your life being miserable?

5. No matter how much money you make, nothing will help you overcome the feeling of doing something you hate.

Many accountants come into corporate America, put in reckless hours during the week and make a great paycheck on pay day. Many of them have all this money piled up, but they never really get to enjoy the fruits of their labor because their labor takes up most of their lives.

Many of them hate their jobs because they aren’t really passionate about what they do. Is there a worse feeling than doing something you hate? Eventually this hatred will cause stress and in the long run, it will have lasting effects on your health.

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6. You are more inclined to work later hours.

When you work somewhere that you are passionate about, putting in later hours isn’t as much of a burden as it is when you don’t like what you are doing. To you, putting in the extra hours doesn’t hurt as much because you don’t feel like you are forced to do it, which makes the experience that much more enjoyable.

Every industry has a busy season and without a doubt there will come a time when you will need to put in the extra hours. Will it be easier for you to work longer on something you can relate to or something you can’t stand doing?

7.You are willing to go above and beyond the call of duty.

Certain obligations at your work will require you to go above and beyond the call of duty. In certain times during the busy seasons, you may be asked to do certain tasks that are not part of your everyday schedule. It is much easier for you to put in the extra work if it’s something you actually care about. Because you are passionate about your job, you will be willing to put in the extra effort to go beyond what is required of you.

8. No obstacle will stop you from achieving success.

When you really enjoy what you do, nothing will stop you from getting your work done. Because you are passionate about what you do, you feel unstoppable and nothing can obstruct you from achieving greatness. Your passion ignites your work, and like a rocket, it accelerates you past road blocks that may come about. Any obstacle that comes your way is accepted and fought off with a creative solution.

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9. Our working careers will consume most of our lives, so we might as well do something we enjoy.

You will spend a majority of your life working and there is no other way around this fact unless you are born into a wealthy family or marry rich. For the rest of us who weren’t fortunate enough, we will be spending a good portion of our lives working in order to make ends meet.

There is no way around this, so we might as well accept the cards we are dealt. Many people go about this the wrong way because they feel like work is something they have to do rather then something they can enjoy. Once you realize that your career should be something you enjoy, then you will lead a more happy and fulfilling life.

10. You will get more fulfillment when you finally make it.

There are few feelings better than achieving a level of success you set out for yourself. Nothing like crossing off your bucket list of goals you set out for yourself to achieve. When you finally reach the pinnacle, it is that much more enjoyable knowing you got there doing something you love. Remember work doesn’t have to be something that you hate doing, stay true to yourself and always do what makes you happy.

The 10 Reasons You Should Follow Your Passion And Not The Money | Elite Daily

Featured photo credit: Randalyn Hill via unsplash.com

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