Why You Should Build Credit as a Young Adult

When I was a senior in high school I had a teacher who drilled in my head that credit cards are IMPORTANT, he explained that achieving a good credit score is necessary to achieve strong financial health. Once I was able to apply for one I got off to the races and started building my credit. Starting with no credit and now having great credit, it really was life-changing that I was able to learn this. Since getting a credit card I have not missed a single monthly payment which is an accomplishment for me. As long as you can use a credit card responsibly, there are endless advantages to buying on credit. They offer rewards, protection, and create a financial model for you to follow at a young age. I have a friend who was denied a business loan for not having at least 5 credit cards, If you want to get into business or get a loan from a bank or creditor having a high credit score is ESSENTIAL for your success. 

Why you should build credit

I started at 18 once I was able to get one without parental consent. I got one and have not missed a payment in these past 3 years. Achieving a good credit score is essential if you care about your overall financial health. As young people, you aren’t taught this and have limited experience with credit and won’t realize all the ways that good credit can help you achieve your business and financial goals.

  • Applying for a mortgage: The lower your credit score is, the higher the rate that you will pay on your mortgage. The difference between a 625 credit score and a 750 score could add half a percent to the rate you will pay for your loan.
  • Get better insurance rates: The FTC study found that credit-based insurance scores are effective predictors of risk under automobile policies. On average, higher-risk consumers will pay higher premiums and lower-risk consumers will pay lower premiums.” It’s also important to note that insurance companies don’t use traditional credit scores.
  • Real Estate Investment: Your credit score helps determine the interest rate on a mortgage loan and the price of a down payment… Lenders see you as likely to pay your loan payments consistently and on time. When you buy a home,  your credit score will temporarily drop. This happens any time you pick up a new credit account. But once you get past the initial drop, financially responsible homeownership will likely increase your credit score more than ever before.
  • High score High rewards: A strong credit history will lead to excellent credit card deals that will give you rewards and cashback. These perks encourage you to keep using your credit card.


Don’t spend what you don’t have. When making purchases on your credit card consider if you have

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