As a college student or young professional you may not be thinking about your credit score right now. After all, you may not have much credit history to speak of, and you have plenty of other things to worry about, such as paying for tuition, finding a job, and building your career.

However, your credit score is an essential part of your financial future, and it’s never too early to start thinking about it. In this article, we’ll explain why your credit score matters and what you can do to start building a strong credit history today.

What is a credit score?

In the US, your credit score is a three-digit number that represents your creditworthiness. It’s based on your credit history, including your payment history, the amount of debt you have, the length of your credit history, and the types of credit you use. If you live in the UK or Europe you may find credit scoring there similar to US, if you are in ASIA you might have a different system, we will post new articles soon to learn about the differences.

Why does your credit score matter?

Your credit score matters because it’s used by lenders, landlords, and even potential employers to determine your creditworthiness. A high credit score can make it easier to get approved for loans, credit cards, and apartments, and it can also help you get better interest rates and lower insurance premiums. On the other hand, a low credit score can make it harder to get approved for credit and can result in higher interest rates and fees.

How can you start building a strong credit history?

The first step in building a strong credit history is to start using credit responsibly. This means paying your bills on time, keeping your credit card balances low, and only applying for credit when you need it. It’s also a good idea to check your credit report regularly to make sure there are no errors or fraudulent accounts in your name.

Another way to build credit is to become an authorised user on someone else’s credit card account. This can help you establish credit without having to apply for a credit card on your own.

Finally, you may want to consider getting a secured credit card. This is a type of credit card that requires you to make a deposit upfront, which becomes your credit limit. By using a secured credit card responsibly, you can start building a positive credit history.

Regardless where you are US, UK, Europe or Asia, your credit score is an essential part of your financial future, and it’s never too early to start thinking about it. By using credit responsibly, checking your credit report regularly, and taking steps to build a strong credit history, you can set yourself up for financial success in the years ahead.