No credit history? Three reasons to start building credit now.
Like running a marathon without ever having run a mile, it can seem daunting to build good credit if you have no credit history. But there are many incentives for doing so. Here are three reasons to聽听迟辞诲补测.
1.聽Buyer protection
There are plenty of聽聽or poor credit, and many of these cards offer some kind of buyer protection. Depending on the card you鈥檙e approved for, you may get protection against fraud or issues with a purchase, such as theft or damage. In some cases, issuers will replace or reimburse you for stolen or broken products purchased with your card.
聽isn鈥檛 complicated. But to get the buyer protections you鈥檙e looking for, make sure you do your research before you commit. The higher your credit score, the more options you鈥檒l have available to you, including cards with more extensive buyer protection.
2.聽To get an apartment or job
You鈥檒l want to build a credit history to prove your reliability to future employers or landlords. Potential employers, particularly in finance-related fields, may look at聽your聽聽(but not your score) to see if you鈥檙e responsible. Keep in mind, though, that they must get your permission before pulling your credit report and notify you if you鈥檙e not hired due to your credit history. Landlords want to see a credit history that shows you can be counted on to pay your rent on time and in full.
Since building up credit from scratch can take some time, you should start well before you apply for your dream job or apartment 鈥� you鈥檒l want landlords or employers to see聽a solid credit history聽when the time comes.
3.聽Better insurance rates
Another benefit to building credit is that a good credit score can get you better rates on insurance. Most states allow聽insurance providers to consider your credit rating. So if you want decent rates on聽听辞谤听, you鈥檒l benefit from building good credit.
Going from no credit history to a solid score may seem like a lot of work, but the benefits are worth the effort. The sooner you begin, the sooner you can reap the rewards of having a good credit history.
This article updated June 14, 2016. It originally published Jan. 6, 2015.
This article聽originally appeared on聽.
