[M]any Millennials have either continued living with their parents or moved back in with them. Other generations have also become multigenerational households for one reason or another. This living arrangement offers a great advantage for anyone hoping to establish or rebuild their credit.
A Chance to Save
One reason people have moved in with their families is because they can’t afford the expenses of living on their own. Some Millennials have chosen to stay at home rather moving out because they don’t have enough to buy or even rent the kind of place they want.
This choice allows you to save your money for a down payment on a home or to pay off old debts. If you want to give your credit score a boost, save the money to pay off a credit card with a high balance or old medical debts or collections. Without the expense of rent payments, utilities and other living costs, you can pay off debt sooner, which will increase your credit score.
Practice Real Life
Those who want to succeed on their own after they move out should use this time to understand how real life works. Some parents will ask or require their adult kids to help with costs, similar to what it would be like living on their own. At the same time, they won’t charge as much as a landlord, which makes it easier to get used to having regular bills.
During this time, you should create a budget, including savings, so that you can figure out how much you can afford once you move out on your own. It’s a good idea to build your savings account while you have fewer expenses. Then, if some unplanned emergency should arise, you can deal with it without ruining your credit rating.
Anyone who wants to have good credit and a good life should use the time spent living at home wisely. Build a safety net with a savings program, save for the future and pay off bills before you start having more expenses of your own.
[Y]ou get a lot of advice when you research online about how to improve bad credit. Some of it is not so good, a waste of time or worse. There are three major mistakes that people make when they are trying to rebuild their credit rating. Mistake #1 – Hiring a Credit Repair Company You’ll […]
[F]or people with bad credit, they are often looking for the easiest or best ways to improve their credit scores. While the quick-fix schemes promised by some companies don’t really work, there are some steps you can take on your own. You won’t see an improvement overnight, but your credit score will climb over time. […]
[Y]ou hear a lot about credit scores when you’re applying for a loan or credit card. You may also hear about good credit and bad credit when you get insurance or rent a vehicle or apartment. With all of this hype about credit scores, why do they matter so much? A Picture of a Moment […]
[I]f you’ve been researching about how to improve your credit, you’ve probably read about credit reports. Many times, articles and other information assumes you know what a credit report is and how it looks. For those without that knowledge, here are the basics. What Is a Credit Report? It’s a list of all of your […]
[T]he car broke down and the mechanic says it will cost $300 to fix it. It may not sound like much money, but for many people it means they can’t pay another bill. The reason is they don’t have an emergency fund, which can help them pay unexpected bills and protect their credit rating. An […]
An emergency fund is something every adult should have. It provides funds to have on hand in case an unexpected expense comes up. It may be a car repair, sick person, home repair or other expense that you didn’t budget in. Many people try to build an emergency fund but fail. Here are three things […]
You’ve probably seen the ads for debt counselors, promising to help you get out of debt and improve your credit score. You may wonder if they can help you and if you should find a company to begin working on improving your credit score. Who Needs Debt Counselors First, you need to understand that many […]