You’ve hit the age of 18 or will soon and your life is looking pretty exciting!  You have just ahead of you a new job, furthering your education, moving out on your own, or buying your first car:  so many exciting things are waiting out there for you.

Not so fast, though.  Did you know that all of those things can be affected by the financial decisions you are making?  Credit history isn’t very exciting, but it does matter.  And it starts building the moment you turn 18 (and maybe before if you’ve taken out a loan with a responsible adult)

Credit history is determined by whether or not you pay all of your loan payments as agreed on vehicles, credit cards or cows.  Too many late payments and your credit history (measured by something called a FICO score) goes downhill quickly.  It can also be affected by whether you write checks when there is no money in your account or if you forget to pay your cell phone bill.

A poor credit history and a low FICO score have the potential to impact the following:
  • Whether or not you can get approved for a loan to buy that car you’ve been dreaming about;
  • Interest rates on new loans (the worse your credit, the more interest you pay, the less money you have to spend on more interesting things);
  • Employment opportunities; Approval to rent or buy an apartment or house on your own;
  • Availability of student loans for higher education, and;
  • Cost of insurance on vehicles.

If you’re thinking that you can’t afford your loan payment this month because you’d rather spend it on clothes or games, think about all of the long term consequences of missing that payment.  Credit history matters and we’re here to help you build it.  Come talk to one of our friendly loan officers any time about how you can build your credit history in an affordable way with McCone County Federal Credit Union.