Credit Score Importance

Today establishing a good credit score is an important quality for young adults to start and continue to build. Building credit is like a building a foundation for a house. Without a good foundation, the rest of the house will not be able to withstand future destructions. Similar to the foundation of a house, young adults need to build good credit, so it can support their future finances. For young adults seeking to build a good credit, Credit Unions are a helpful resource in providing accessible services for obtaining credit. In addition, having good credit is an essential quality for reasons such as applying for loans and for strengthening financial responsibility. A good credit score is beneficial for when applying for loans. Along with credit cards, loans can seem intimidating. Nonetheless, loans are the act of “borrowing money” that allows one to …show more content…
In order to build a credit score, one must begin with having a credit card. A credit card requires one main responsibility and that is paying the bill on time. Instructions for bill payments can differ between credit card companies and many charge late fees for overdue payments. It is the responsibility of the cardholder to make these payments on time. Thus, having a credit card and making payments on time will increase a credit score. An additional attribute towards raising credit score is to keep lower balances per card. Being in control of the amount of money one is spending on their credit card is an imperative task. Unfortunately for some card users, tempting and expensive purchases can put one at risk when they are unable to afford the monthly bill. Learning to be in control and accountable with card purchases will help improve credit score. These responsibilities from having good credit can teach young adults about financial planning and influence them to continue to strengthen their credit score for