Credit History

One of the most important benefits that credit cards provide is the chance for you to build quality credit. Your credit history is becoming more and more important these days. While a credit history was once reserved for house and car loans, it now is used much more extensively.

By getting a credit card, you have the first step to establish a good credit history. This is especially important since no credit history at all is often looked upon by lenders and other companies to be the same as bad credit. Since a non existent credit history is an unknown. institutions that pull your credit report will charge you more for the same service or loan than people that who have a credit history.

A credit card allows you to prove that you are a good credit risk. By showing that you are disciplined and can pay off your debts each month, you can establish and raise your credit score. When you establish a good credit record and score, you’ll be able to get discounts in a number of areas that you would have to pay more for with no or bad credit.

Here is a list of some of the places which look at your credit report:

  • House loan
  • Car loan
  • Employment
  • Car Insurance
  • Life Insurance
  • House Insurance
  • Medical Insurance
  • Rent Application
  • Credit Card Companies
  • Utilities
  • Cellular Phone Providers

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