Why Build Up Credit History

Why Build Up CreditIt’s never too early to start build up credit. Young people and those who never used credit should start building credit and the sooner the better.

In today’s financial world, your credit history is almost as important as the amount of money in your bank account. Whenever you plan to apply for a credit card, a car loan, a home loan or any other loan – you can be sure that your credit history will be checked.

Even if you have no intention of ever using credit, your credit history is shadowing your moves.  You just want to rent an apartment, or ask for an insurance quote, or you’re simply applying for a job – be sure that they’ll check your credit history.

And – as it turns out, the bad news is that lack of credit history is often as bad as having a bad credit history.






Lack-of or bad credit history may affect you in various ways. Your credit history may be used by:

  • Banks and lenders – to approve or reject your home or car loan
  • Banks and lenders – to set your terms (if you’re lucky and got approved)
  • Credit card companies – to approve or reject your application
  • Insurance companies – to evaluate your application and set your premiums
  • Landlord – to decide if you can get an apartment
  • Potential employers – to decide if you’re responsible enough for a certain job

In all these cases – having a good credit history may tip the scale, and may prove to be your best investment ever. Clearly – establishing credit history is an essential 21st century skill.

Even if you have no special financial plans for the near future, you should still make an effort and build up credit. Just have a look at some common Google searches or what people ask at forums: “bad credit loans”, “credit cards with poor credit” etc.

When it comes to building credit history, I embrace Benjamin Franklin’s famous quote –

“By failing to prepare, you are preparing to fail”.

Who should start building credit history?
Young people who are just starting to learn about financial responsibilities need to start build up credit as early as possible. The same goes for anyone without a credit history such as people who never used credit, new immigrants or new residents.









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