Importance of credit history in today’s life

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Importance of credit history in today’s life

Importance of credit history in today’s life

Updated: December 26, 2012

Add to Favorites:

Having a credit card is today one of the basic requirements people have in their life. It is not possible to avoid this as many transactions mandatorily require a credit card. It also comes in handy in situations where you cannot find an ATM to draw cash immediately or do not wish to carry large amounts of money at hand. It is important to also understand that having a credit card is the best way to establish a credit history early on. This is important in many ways as it helps a person to ensure in advance that they have enough credit when it comes to taking a loan, applying for a mortgage or looking to get a second credit card. There are many people who apply for a credit card early on, as early as college and work at establishing a good credit history. The older the account, the better it is for your credit.

In addition another important aspect is that without credit history and a good credit score you cannot opt for or get better cards later on. If you have been having a card and using it regularly, making your payments on time then you can be sure that you will be able to get a lowered interest with your bank later on. It will also make you eligible to receive an instant approval card or pre approved card offers. There are numerous areas where credit history is important. Even when it comes to insurance, loans, mortgages and other aspects of finance, having a decent credit history can help you negotiate the interest amounts and also the payments you should be making. A credit history is a very important variable when you wish to get a good insurance premium as well. In addition it can also determine employment opportunities for people.

Another vital detail that is assessed with credit scores is in situations of employment. Particularly for jobs in the financial sector people are required to have a good credit score so as to be able to be eligible for their jobs. It helps to make sure that they are trustworthy and reliable in matters concerning money. Another important aspect to be evaluated is that credit history can determine whether a person will be given a better choice in credit cards with rewards. Especially for the high end exclusive cards an excellent credit score and a large salary are a prerequisite.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading