Many students perceive credit to be negative, and a sure-fire way to catapult you into debt. Others simply don’t have an opinion; if they get in trouble, mom and dad are there to help out.

Credit is not bad; on the contrary it can be very beneficial and even necessary. Establishing good credit plays an essential role in your future. Remember, mom and dad will not always be there. The actions that you take will not only affect you now, but after you graduate as well. Would you like to buy a car or rent your own apartment? Doing either of these is dependent on your credit history. It is important to act responsibly by paying your bills on time, and maintaining good finances. Establishing a checking or savings account, and applying for a low interest credit card (that you use responsibly) will help you to establish good credit. One important rule is to always be certain you will be able to make the minimum payment and eventually pay off your debts. Establishing good credit will allow you to take out loans for a vehicle or home. Your credit history will impact the amount that you are approved for and on the interest rates of your loans.

If you are irresponsible by defaulting on your payments, you will face the consequences later. By increasing your debt and obtaining bad credit, you will decrease your chances of being approved for loans. Lenders will feel that you are not reliable and not capable of paying off your debt. If you are approved, your interest rates will be considerably higher than if you had good credit. When you apply for an apartment your credit history is reviewed, and that can affect whether you can lease the apartment.

Remember to act responsible and build good credit! The choices you make now will affect the rest of your life.