Those who are attempting to build a
credit rating might be concerned they will have to substantially restrict their spending in order to do so.
However, this is not necessarily the case, as some experts suggest being credit active can improve a profile.
Doing this can prove to lenders the individual is capable of responsibly managing their finances, in addition to suggesting they are reliable at keeping up with repayments.
Furthermore, it is not necessary to break the bank while engaging in favoured activities.
New research from Sainsbury's found the majority of Brits still intend to take a holiday in 2012, despite the harsh economic climate.
The average expenditure on a trip was found to stand at £765, but a survey conducted by the organisation indicated many will be making cutbacks.
Over three-quarters (78 per cent) of respondents said they intend to spend less then they usually do on a getaway.
Some may be looking to make savings by taking a break during off-peak seasons, as 6.8 million people were found to be booking their trip by the end of February.
It was noted that while many people are still intent on taking a holiday, the majority are sticking to a strict budget plan in order to make this possible.
For instance, the study suggested some people could be delaying their booking in order to secure a better deal.
Some will also be making cost-cutting measures like finding cheaper places to stay, with 28 per cent of those who intend to take a break in the UK holidaying with friends and family.
This also applies to 13 per cent of respondents who will be travelling abroad this year, with self-catering also said to be a viable solution.
Responsible money management like this may be able to help build a credit rating, as if people are still able to keep on top of their bill costs, lenders might be reassured the individual is a reliable borrower.
Posted by Gemma Walker
