How Credit Can Impact Your Future
Ever hear people talk about the things that they know now that they wish they knew earlier? Understanding how credit works and how it impacts our lives is often one of those things! The decisions we make in early adulthood can have long-term effects on achieving our financial goals.
Here are a few areas where not taking care of your credit rating can have serious future repercussions.
What Your Credit History Says To Potential Employers
Did you know most employers use your credit history as part of their hiring process? Recent surveys suggest that out of the 72% of employers that conduct background checks on their prospective applicants, 29% include a credit history check. Financial behaviors such as delinquencies and accruing excessive debt can give a negative impression to your employer, potentially costing you a shot at landing that dream job.
Moving Out (& Moving Up) Takes Good Credit
As early as our teenage years, we often catch ourselves daydreaming of the day we move out into the world on our own. Whether you’re getting an apartment with friends or buying a first home, your credit and how you’ve handled your finances can weigh heavily on your ability to rent or buy. When it comes to getting your own place, your credit history can be a deciding factor when it comes to how much you’ll pay on deposits for leases and utilities, too.
Strong Credit Makes For Easier Borrowing
While buying a home is a big financial decision that many of us put off until later, there are many other types of borrowing that are impacted by how we’ve handled credit as younger adults. Interest rates on a credit card for unexpected emergencies and our first car loans are greatly affected by how we’ve handled our credit to that point. Though you may not see yourself needing these things now, mismanagement and impulsive use of credit in our early years can take quite some time to repair when financial needs arise later.
While enjoying our younger years might be top of mind now, being aware and in control of financial behavior patterns can have a positive impact on your credit and financial goals down the road.
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