About the author: Hi! My name is Ash Sutton, and I am a Digital Media and Communications student at the University of Birmingham. I am an aspiring lifestyle, arts and culture journalist and all-around geek. In the times I’m not spending an absurd amount of money in restaurants, you can usually find me tucked in the corner of my bedroom with a coffee and my latest cross-stitch kit, rewatching a Marvel movie or listening to Broadway soundtracks until I am sick of them.
Credit scores are every adult’s worst nightmare and best friend; that single number can make or break your future, and for many, your time at university can make a bigger impact on that score than you might think.
In a phase of life when money is always tight, your credit score might be the last thing on your mind, but neglecting it may affect your ability to take out loans or rent a place once your time in education is over. Here are a few simple, low-effort tips that can help keep your score up while you study.
It might seem obvious, but paying your bills on time can have a great impact on boosting your credit score. This can do two things: it proves you can manage your money well and shows the bank that you can stick to a schedule. Ultimately, it gives banks the confidence that you’ll repay future loans on time, precisely when needed.
If you don’t have a great memory for dates, I’d recommend making use of your phone reminders so you can get on top of your payments a couple of days ahead of when they’re due. If your bills are fixed, you could also set up a direct debit in your mobile banking app so the correct amount is sent to your bills company on the same day each month. This way, you don’t need to think about it at all!
Many banks offer credit cards specifically for students, with lower limits and a plethora of rewards and perks. Using a credit card for small purchases and ensuring you are consistently paying it off is also a bona fide way to improve your credit score while at university.
You can use it for your weekly food shop, or if you drive as I do, you can dedicate it to your monthly petrol top-up.
If you’re not sure you want to commit to a credit card just yet, a mobile phone contract can help you start to build credit. Every single payment you make acts as a small boost to your score (if you pay on time, of course). A 12-month SIM-only contract paid via a direct debit is a low-cost solution – you can continue using your phone as normal without a worry.
Every student has heard an overdraft horror story. Your flatmate is £1999 in debt with a mere £1 to spend on dinner with no prospect of exceeding 0 with their next payday, or a night out is cancelled at the last minute because a pint would break the bank. However, there are two types of overdrafts, and only one can significantly harm your credit score.
Unarranged overdrafts occur when you spend more money than you have, but some accounts have a pre-arranged agreement for situations like this. Many banks offer student current accounts that have a pre-arranged overdraft of various limits. Santander, for example, offers £1800.
This arrangement means that banks are more forgiving of overspending, as long as it is within the limit, and credit scores don’t drop quite as much. Make sure you do pay your overdraft off eventually, though, whether that be with your student loan or when you get your first grad job, as you can quickly find yourself in an endless cycle of debt.
Strangely, your place on your local electoral roll can also have an impact on your credit score. This is because it allows lenders to officially confirm your name and address quickly and conveniently. So, consider registering to vote in your university city whilst you are living at your term-time address.
Students can register to vote in two places, so you can be documented in your home and university towns at once rather than constantly reapplying as you travel back and forth. You can do this via the Gov.UK website.
If you want to take one more worry off your mind as a student, why not bundle all your utilities like broadband and energy with Split The Bills? Once you select your custom package, Split The Bills handles the suppliers, so everything’s up and running for you in your house share. The bills are split equally between housemates, and you don’t have to worry about unreliable housemates bringing down your credit score – all housemates are billed separately, so you only have to take care of your fair share. Simple!
Grab a quote to get started today.
The views and opinions expressed in these blogs are those of the Split The Bills Content Ambassadors and do not necessarily reflect the opinion of Split The Bills. Split The Bills accepts no liability for the content of these Student Blogs.
Split The Bills is not a financial advisor. This should not be considered as professional financial advice. Do your own research & consult a professional financial advisor before making any financial decisions!
Credit scores are every adult’s worst nightmare and best friend; that single number can make or break your future, and for many, your time at university can make a bigger impact on that score than you might think.
Moving into a student house is one of the best parts of uni life; more freedom, living with your friends, and finally feeling like a proper adult. But one thing that catches almost everyone off guard? Bills. In this guide I’ll talk you through the most common mistakes students make about bills so you can dodge them.
Moving to the UK as an international student comes with a lot of adjustments, including trying to figure out the transport system, cooking, getting used to the weather, and (one of the biggest adjustments of all) figuring out how to pay utility bills in a new country. In this blog, I’ll take you through the biggest surprises I came across when tackling bills in the UK as an international student.