Starting a credit history in college might benefit you in the future — but, just like toning muscles or learning to play an instrument, you often can’t build a solid credit history overnight. It’s something that can take time and consistency. According to NerdWallet, two things that can factor into your credit score are your bill payment history and the age of your credit history. Simply put, it can be important to demonstrate a good track record with credit.

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Consider these four scenarios where having an “older” credit history can be beneficial:

Renting an Apartment


You might currently spend hours washing your roommate’s mountain of dirty dishes, but eventually you may be in the market for an apartment of your own. Some landlords might require a credit check from prospective tenants, and almost 50 percent of landlords say the results of a credit check are among their top three factors when considering a tenant’s application, according to the consumer credit bureau Transunion.

If you can show your potential landlord a good credit history, you could have an easier time securing the apartment of your dreams.

Buying a Car


Another time a good credit history can be important is when you’re ready to finance a car. Your credit score could play a part in the car loan interest rates you get, says NerdWallet. The better your score, the lower the interest you’ll likely have to pay. Plus, a good credit score might even benefit you when shopping for car insurance. You can use Discover’s Free Credit Scorecard to find out your credit score and more in just seconds — it’s totally free and doesn’t ding your credit.

Buying a Home


Credit history isn’t just important for renters either. Buying a home can be part of the classic American dream, and some people turn to mortgages to finance house purchasing. According to NerdWallet, when it comes to mortgages, a good credit history could result in a lower interest rate. That means you’ll most likely have less to pay off over time on your perfect pad.

Starting Your Own Business


Beyond apartments, houses and cars, your credit history can even affect you should you want to start your own business. If you have a business idea and want to be your own boss, a business loan can help you get your business up and running. In some cases, your business loan rate can be partly determined by your personal credit. Having a good credit history may make it easier to secure a business loan and might result in lower interest rates when it comes to paying the loan back.

Developing a good credit score can have lots of benefits, and initiating that credit history as soon as possible can be vital to your score. So, while you may have a lot on your mind between classes, homework and a social life, beginning your credit history in college can be an asset to building a bright future.

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