Establishing Credit

Good credit comes with many benefits. Not only do lenders look at your credit and credit history when deciding whether to loan you money, but employers, insurance companies and landlords consider your credit history as well. Because your credit history can help others make decisions about you, it’s important to learn the basics of establishing good credit early on.

Establishing Credit When You’re Young

Establishing credit and learning how to use it wisely can make your transition to adulthood so much easier. Start by having your parents include you as an authorized user or joint account holder on one of their credit cards. You can help them review the monthly statements and even help make payments.

Positive credit history, though, is about more than just being able to use a credit card to make purchases. Future employers might consider your credit history when you’re looking for your first job. It might even play a role when you’re getting your first apartment application approved, and it will be crucial when buying a car.