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Credit Card Applications » Questions » User Questions » Build Credit History » I don’t understand what is so important about having a good credit score. Why will I...

I don’t understand what is so important about having a good credit score. Why will I need to have a credit history at all? I don’t want to go into debt.

Answered on | Updated on September 24th, 2017
The content is accurate at the time of publication and is subject to change.

Establishing a credit history does not mean you have to go into debt. Good credit is a tool, and an essential thing for most people to have. When you apply for a mortgage, a business loan, an apartment, or even a job, people will look at your credit score to help them determine whether you are a person who can be trusted to pay back you debts. Therefore, if you want to ever be able to buy a home, start a business, rent an apartment or get your dream job, it’s important to establish credit and maintain a good credit score. It’s a reality of life these days. Think of your credit score as a general indicator of your financial health, like blood pressure is for your body. Building a credit history is easier than you think, and if you are wise and responsible, you’ll have excellent credit before you know it. For example, you can start with getting a shopping credit card of your favorite store like REI or another. They will send reports to credit bureaus and build your credit history.

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  • Tobianne Judy

    I am 38 years old and I have bad credit. I would like to apply for a credit card that will help build my credit back up. Most credit cards will not approve me due to my bad credit. I have a checking account and have had this checking account for over 5 years and has never had over withdrawals or never even close to being in negitive. Which steps should I do to build my credit and which credit card would best suit me and would approve my credit????

    • CreditLandCom

      In case you have never used a credit card, we would recommend you start
      with secured credit cards. These cards require a security deposit paid upfront. A secured credit card is a good way to build your credit history as it reports the account activity to major credit bureaus. You just need not to miss payments and pay off your balance. After that, getting approval for an unsecured card will be much easier.
      Now there is a good offer from Discover – Discover it Secured card. This
      card requires a refundable security deposit of minimum $200. It would be a good choice as it has no annual fee. Standard variable purchase APR is 24.99%. After 8 months, Discover will automatically start making reviews to see if it is possible to switch you to an unsecured line of credit and return your deposit. What is more, the card has a rewards program: you may earn 2% cash back at gas stations and restaurants on up to $1,000 inn combined purchases each quarter and unlimited 1% cash back on all other purchases — automatically. After the end of the first year, all of the cash back rewards you’ve earned will be matched.

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