When Should Young Adults Start Worrying About Their Credit?


Filed under: Credit Issues


Credit history and credit scores seem like topics that people don’t need to worry about until they are well into adulthood. Many young adults feel like it’s ok to wait before they work on building their credit history. But the truth is that the need for credit happens soon after college, so don’t delay the choice to start working on your credit.Provost - When Should Young Adults Start Worrying about Their Credit

The simple answer is: it’s never too early to start building a credit history. Getting started early in life can make a big difference when it’s time to fly the nest.

Why Credit is Important at Graduation

When the diploma is in hand, and the new grad starts applying for jobs, their credit could influence their ability to get work. Some employers run credit checks on applicants as part of the process of screening potential employees. Credit checks are common when the job duties include tasks such as accounting, bookkeeping, or management of bank transactions. The employer wants to get a feel for the candidate’s financial responsibility.

Credit can also affect a person’s ability to find a place to live. Landlords often run credit checks to ensure that the renters will be able to keep up with the monthly payments. Credit history is also important when a person is applying for any type of loan, such as buying a house, buying a car, getting credit cards, and more.

How to Build a Credit History

In the young adult years, you need to show a history of being able to borrow money and pay it back responsibly. The easiest way to get started is by getting a basic credit card. Every time you pay the bill, it helps to build your credit profile. The best strategy is to pay the bill in full every month.

Be selective about applying for credit by only choosing reputable companies. Also, consider using a secured card if you are unable to get a regular credit card. These secured cards require that you make a deposit with the lender to hold as collateral for the spending limit.

For other tips about building your credit, talk to our experienced team at Franklin Loan Center. Whether you are ready to buy a home or you are preparing for the future, we are here to help!


Franklin Loan Center | NMLS 237653
Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 4131316
http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/237653
For questions or concerns please email info@franklinlc.com