Establishing Good Credit

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One key measure of creditworthiness is your credit history. Lenders use the information in your credit report to evaluate your history of timely payments and how responsibly you've managed credit in the past. If you are a good credit "risk" it means that you have managed your debts responsibly and are likely to pay back what you plan to borrow. The longer your credit report remains unblemished, the more confident others will be in lending you money when you need it. or order a credit report online.

Why should you establish good credit?

  • You may need good credit for such routine matters as having the utilities connected to your home.
  • Good credit is important to secure financing when buying furniture, a computer, car, or even a new home.
  • Employers often check the credit rating of prospective employees. A solid credit rating reflects positively on your ability to manage your job responsibly.
  • Renting an apartment may be easier. A good credit rating tells landlords that you are a person who's more likely to pay the rent on time each month.
  • You may be eligible to receive loans for education.
  • If you need access to large sums of money, banks may look more favorably upon giving you the loan you need.
  • Strong credit references can open a world of financial opportunity. Someday you might want to use credit to finance a business.

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