How having good credit can make life simpler

Wednesday, January 12, 2022

Companies like American Express and the Diner's Club introduced credit cards in the 1950s and 60s as a new way to pay for restaurant bills and travel reservations on borrowed credit. Half a century later, credit cards have played a much larger role in our lives. However, credit scores came about a lot later than the first inception of credit cards.

Credit scores were introduced in 1989. A person’s score is evaluated by a person’s ability to repay a loan. Lenders such as banks use credit scores to evaluate the risk of lending money to consumers. If a person has a history of being late on bills or has a lot of debt, they may have a low credit score. They may be denied a loan, credit card, or insurance due to their credit score.

If a person consistently pays their bills on time and always pays their credit card statements when they’re supposed to, they will have a higher score. Having an exceptional credit score comes with many benefits, such as getting better insurance rates or qualifying for a cheaper mortgage rate to buy a home. Ultimately, a good credit score can make life much simpler.

In a recent MyBankTracker survey, it was revealed that 49.7% of millennials don't own a credit card. And 53% of those aged 18 to 24 said they don't have a credit card and never applied. For young people entering the world of adulthood, it is of the utmost importance to establish credit – good credit at that.

If you’re interested in learning about credit scores, please take a look at the following infographic. It details everything you need to know about your credit score and how to boost and maintain it. Check it out below.

Infographic Design By CreditPicks credit repair with Creditpicks

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