Here on the Loqbox blog we’ve been talking a lot about our goals for 2021. And if you’ve missed any of our posts on this topic so far, then take a look now at What is your one big goal for 2021? and The ultimate guide to achieving your one big goal in 2021. There’s some useful stuff in there to help you get started with setting your goal and making a plan to achieve it.
What I want to talk about today however is something that may not be all that obvious. And that’s the question of what your credit score has to do with achieving your goals.
But first thing’s first, let’s look at what a credit score actually is.
What is a credit score?
To find out, watch this video where I explain exactly what a credit score is in two minutes and 38 seconds.
Got it? The important thing to understand here is that it’s not your credit score that matters to lenders, it’s your credit history. But your credit score is a helpful indicator to you as to how creditworthy you will be in the eyes of a lender were you to apply for credit. And that’s why working to improve your credit score is so important. It’s a reflection of the health of your credit history.
How can a good credit history help me to achieve my goals?
Most of the big goals in life take money to be achieved. From buying a house (for which you’ll need to save a hefty deposit and get approved for a mortgage), to getting married (the average cost of a wedding in the UK is now £16,005), or even reskilling to make a career change (courses can cost tens of thousands of pounds) — achieving the things we want to in life often requires both a big lump sum of cash and good financial health.
Perhaps you plan to achieve your one big goal by borrowing money with a credit card, loan or mortgage. In which case you will need a good credit history in order to both get your application approved, and to get a good deal from lenders so that it is not expensive for you to repay.
Building a regular savings habit
A regular savings habit can help you on your path to success also. If you’ve never tried to save money before, or not been successful in the past, then now’s as good a time as any to give it a go. The secret to building a savings habit is to start small but do it regularly. Put in other words, in the beginning it’s best to focus on the frequency with which you’re topping up your savings, rather than the quantity you’re topping it up by.
Choosing a monthly savings goal is a great way to go about this. Just remember to make it easily achievable by starting small. And once you’ve done this reliably for a while, if it suits you, you can look to increase it gradually over time.
Loqbox makes it easy to build your credit history and develop a savings habit (at the same time, for free)
Sorry that was such a long heading but there’s a lot of good stuff to cram in there! And it’s all true. Yes, Loqbox can help you to build your credit history, while you save, for free. This will give you an extra boost when it comes to achieving your one big goal in 2021.
To find out more about how Loqbox can help you, visit our website here.