Question

why is it important for young people to establish a good credit history as soon as possible?

Answer 1

Yes it is very important for young people to establish goof credit history as soon as possible.

A good credit history signifies that you are a person who can be trusted with the banks's finances as you have been paying the banks's dues of the loans taken earlier on time along with interest with no defaults. So , this shows that you are credit worthy and the bank can extend finances to you even in the future be it credit card, home loan, personal, loan , medical emergency loan.

If you fail to pay any of the loans borrowed earlier, it gives a drastic impact on the credit history and prevents you from securing any future loan, The first thing that banks checks before granting loans to any individual is the credit history and the credit score. if the individual's core is poor this would lead to the cancellation of the loan application.