4 Ways People Affect Their Credit Before They Turn 30

Picture: Dylan Gillis

According to a new credit survey, nearly 70% of Americans have made a significant financial error affecting their credit before the age of 30. Young people with limited information about how finances work might not realize that the decisions they make can matter in the long term, but they just might.

A low credit score can sometimes make securing competitive loan rates, insurance, and even apartment leases challenging. While your financial situation might be the last thing you consider while studying, it might be worth avoiding the following mistakes to keep your credit score healthy.

Missing a Credit Card Payment

Missing a credit card payment might not seem like a big deal, but it might lower your credit score more than you think. If your credit score starts high, a 30-day or 90-day missed payment can sometimes cause a dramatic drop of upwards of 60 points to well over 100. If you have a lower score already, the drop can be less significant but still damaging.

However, if you miss a payment, there are things you can do to limit the adverse effects. Pay at least the minimum as soon as possible, call your card company to negotiate your payment, and do your best to avoid making another late payment.

Missing a Loan Payment

Missing a loan payment can often be just as damaging as missing a credit card payment. Late payments can drop your credit score dramatically in some cases, and the blemish can remain on your record for up to seven years.

Alongside damaging your credit score, you might also be penalized with late fees, which might exacerbate your poor financial situation. Lenders generally only report late payments if you’re 30 days past due, so you might be able to avoid severe consequences by paying in that window.

Defaulting On a Loan

Defaulting on a loan describes when a borrower doesn’t pay back the funds outlined in the initial agreement. For example, if you borrowed money to purchase a laptop for university and didn’t pay it back when it was due, you would be defaulting on that loan.

A default entry stays on your credit report for seven years and can significantly impact your credit score. This is especially true when you would have already experienced a credit drop with missed payments before the default.

Having a Debt Sent to Collections

Many companies send their debts to debt collection agencies when they’re 120 to 180 days overdue. At this point, a third party does its best to collect the debt on behalf of the company. A debt collection is one of the most impactful entries on a credit score and will remain there for seven years.

The Fair Credit Reporting Act prevents consumer reporting agencies from reporting negative information older than seven years old and bankruptcies more than 10 years old. However, if you attempt to take out a loan or even open a cellphone account before those periods are up, lenders and creditors will have access to this information and might base their decisions on it.

Many people make poor financial decisions when they’re young without realizing they can have consequences when they’re older. Now that you’re aware of the most damaging financial mistakes, you might be in a better position to avoid them.

Why Choose Durban when Moving Abroad

Are you looking for a new place to call home? If so, you may have thought about moving abroad. But why pick Durban as your destination? Durban offers a unique combination of culture, adventure and relaxation that is hard to find in any other city. From its diverse population and laid-back lifestyle to its stunning scenery and warm climate, there are plenty of reasons why Durban should be on your list. Read on to learn more about all it has to offer!

The Climate in Durban

Durban is a beautiful city located on the east coast of South Africa. The climate in Durban is tropical, with warm weather all year round. The average temperature in Durban is 26℃ (78℉) with not much change during winter. The city experiences a lot of rainfall, so it is always green and lush with a tropical feel. Durban is a great place to live if you enjoy warm weather and spending time outdoors.

The People in Durban

Durban is a cosmopolitan city with a diverse population and the city has a strong international community. There is a strong contingent of Indian people, as they were brought over from India and other countries, as indentured laborors from 1690 to 1725, to work on the sugar plantations.  The people of Durban are friendly and welcoming, and the city has a relaxed atmosphere.  The city is popular with retirees because of the warm weather.

The people of Durban are proud of their city, and they are passionate about its history and culture. Durban has a vibrant arts scene, and there are many opportunities to get involved in the community.

Food in Durban

When it comes to food, Durban has variety. The city is home to excellent restaurants, cafes, and markets that cater to all tastes and budgets. Whether you’re looking for a quick bite or a leisurely meal, you’re sure to find something to your liking in Durban.

The local cuisine is heavily influenced by Indian and African flavors, so you can expect to find plenty of spice in many of the dishes. However, there are also plenty of non-spicy options available, along European, American and Asian food. In addition, with its large Muslim population, Durban is also home to some excellent halal restaurants.

One of the best things about the food in Durban is the price. Compared to other major cities around the world, dining out in Durban is very affordable. Even if you choose to eat at one of the nicer restaurants, you’ll still be able to get by on a budget.

The Culture in Durban

Durban is a melting pot of cultures and has something for everyone. The city is home to a large Indian population, as well as people of Zulu, Dutch, English and Portuguese descent. This diversity is reflected in the food, music and arts scene of Durban.

For those who are sporty, the climate in Durban is perfect for outdoor activities as there are plenty of beaches, parks and hiking trails to explore. The world famous Comrades Marathon is run from Durban and brings thousands of people into Durban every year.

For the more artistic people, there are wonderful theatres, local arts and crafts markets and lots of live music entertainment.

Durban is also an ideal location for raising a family. The city has excellent schools and hospitals, and there are plenty of activities and attractions for children of all ages.

The Cost of living in Durban

Durban is a relatively affordable city, with a cost of living index that is lower than many other cities in South Africa. Here are some examples:

  • furnished accommodation in an average areaFonthly rent for 85m2 (900sqft) – R8,634 ($501)
  • Meal for two at an average restaurant (inc starters, main, wine, dessert) – R650 ($32)

Jobs in Durban

There are many reasons to consider Durban as a place to live and work. The city has a vibrant economy and is home to numerous multinational companies. If you are in any industry related to ports, this could be the place to you.  Added to that jobs in Durban also include tourism and entertainment. Even though this is a city, it is still viewed as a ‘slow moving, chilled’ city.  There are plenty of job opportunities in Durban for skilled workers. As there is a skills shortage in South Africa, jobs in South Africa are quite easy to come by if you have the correct skills set and education.

In conclusion, Durban is an amazing city for those who are looking to move abroad. It has a vibrant culture and plenty of opportunities for growth and development. Along with its beautiful beaches, warm weather, diverse population, and affordable cost of living, there are many reasons why Durban should be your top choice when considering moving abroad. With so much potential in the air, it’s no wonder that Durban is such a popular destination!

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