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Living With Bad Credit

For us poor Millennials, all the key stages of becoming an adult are exactly the same as the generation that went before us – learning to drive, buying a car, moving out, getting a mortgage, starting a family – but each step is hindered by a lack of money and, in many cases, bad credit.  With the cost of living forever on the rise whilst wages remain relatively low, the disparity means that the majority of 18-35 year olds are having to make huge lifestyle compromises.

passeddrivingtestFor a lot of young people, including couples and even families, the big compromise to be made is living with parents or in laws whilst saving for your own place, mortgage deposits being so high these days.  I can only imagine the frustration of situations like tis – I would hate to try and raise my family in what is essentially someone else’s home, even if they were family and had our best interests at heart.

Personally, the two main sacrifices I have been forced to make have been learning to drive and securing a mortgage – two key steps to independence and maturity that I always assumed I would have well and truly sorted by the time I was 30.  Sadly, at the moment, I am unable to afford either, and with two school-age children who are constantly in need of something, savings are hard to come by.

img_5560.jpgI recently started looking for a credit card, having never before had one, with the express purpose of building up my credit rating, in the vague hopes of possibly owning a property one day (you have to start somewhere, right?).  I searched thoroughly and this one from Vanquis seemed my best option; my credit limit is low at just £200 (hello bad credit) but may be subject to increase after just my 5th statement.  I use the card for a couple of small purchases per month and pay off the amount spent in full – it may sound as though using a credit card in this way is pointless or a waste of time, but with a credit building card like mine from Vanquis, this usage is an easy and hassle-free way to improve your credit score.  I intend to use it for a couple of years and am hoping it will make a difference to my credit score, bringing us closer to our dream of buying a house (nothing big or fancy, just something modest but, crucially, ours).  In the meantime, with property ownership a way off, I at least would like to learn to drive – watch out, World 😉

Are you struggling with bad credit? Or have you found a way out?  I would love to hear your tips on budgeting and saving!

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