Young people 'more financially savvy'

When looking to build a credit rating, many people could be setting themselves a strict budget plan and using any spare money left over to save for emergencies.

Young people may be more disciplined in this sense than their older counterparts, as research from First Direct indicates 86 per cent of 25 to 34-year-olds are either already doing this or thinking about starting to.

It was speculated this could mean young Brits are more conscious of money issues, as they are also more likely to consider overpaying on their bills.

This could help improve bad credit history, as paying over the minimum bill cost can demonstrate to lenders the individual is a reliable borrower and able to stay in control of their finances, even when times are tough.

In comparison, only 62 per cent of over-55s have taken the same attitude to their income, although this might not necessarily have an adverse effect on a credit rating, as being credit active can help to improve a profile.

Posted by Gemma Walker