Two teenage girls with a credit card.

Building a good credit history is huge for your credit health, but you need to know why maintaining good credit overtime is so important. A good credit history will definitely help you get more credit. But did you know that it can affect your everyday life too—even in the near future?

1. Your Car Insurance

A person with a perfect driving record may have to pay the same high rates as a driver with tickets and accidents. Why? Because in addition to your driving record, insurers use credit history to decide how much you pay. It may not sound fair, but it’s a fact.

2. Your Apartment

Landlords run credit reports. If you have a poor credit history, it will be very difficult to find a decent place to live. There will almost always be someone with good credit vying for the same apartment or house. If you were a landlord, which tenant would you choose?

3. Your Job

Most employers review your credit history before hiring you. Some employers won’t hire someone with a poor credit history. Others may use it to decide between two otherwise equally qualified candidates. In the business world, your credit history is a common measure of how trustworthy you are. Even if you earn your college degree, a poor credit history may seriously limit your earning potential.

4. You Will Need Loans and Credit Cards

Cash is not always king. Let’s say your first loan was a car loan. You weren’t so great at making payments on time. Now that car’s worn out and won’t make the long road trip you have planned. Do you have enough cash to pay for a rental car and hotel? If not, a personal line of credit or credit card can help save your trip – but you’ll need good credit to qualify for those accounts.

5. Your Everyday Finances

This means how to buy things and pay bills. It's always good to be careful with your checking and savings accounts. Overdrawing or mismanaging accounts could negatively reflect on you and potentially make opening more checking or savings accounts difficult. 

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