Building Good Credit History for Students
- 2014 2 Feb
Building Good Credit History for Students.
Credit history, by nature, measures consumer’s ability to repay debts and their demonstrated responsibility in repaying debts. A person’s consumer history (numerically represented by individual Credit Score) is then used when approving credit (credit cards, home loans, store cards, car loans, etc). Credit history is also critical when renting an apartment, applying for utilities, cable TV, or even a cell phone plan. Everywhere we turn our personal credit history is being verified in order to access basic services, so it’s critical we behave in such a way that helps us establish and maintain a positive credit history.
Many young people should remember that a negative credit history will cost them money. This could be in the form of higher interest rates on a car loans, credit cards, or even home loans. Acquiring a habit of paying debts on time, every time, is critical in order to save money long term.