Why it's important to establish credit history when you're young

First off, what is credit & credit history? 
 
Your credit history is a record of how you've managed your credit in the past. It is displayed within a credit report. A credit report includes a credit score, which is a number (usually between 300 and 900) that represents your creditworthiness. It’s a standardized measurement that financial institutions and credit card companies use to determine risk level when considering issuing you a loan or a credit card. Basically, it provides a snapshot of how likely you are to repay your debts on time.  
 
Why it’s important to establish credit when you’re young  
 
Establishing credit will set you up for future success.  
 
Your credit history is something regularly used to provide you with goods and services. You’ll need to be able to rely on your credit history for things like getting a cellphone, renting an apartment, getting good car insurance rates, not to mention loan or mortgage rates down the road.  
 
The better your credit history, the lower interest rates and premiums you typically pay. Without a credit history, you may be denied loans or services, or even need to pay higher rates.  
 
Building a credit history doesn’t just happen overnight, it takes time. The earlier you start the better.  
 
A smart way to build your credit history  
Getting a credit card with a low limit is a great way to start building your credit history.  
 
If you use your card responsibly, make your payments, and don’t spend more than you can afford, then applying for a credit card as soon as you turn 18 is the ideal way to start building your credit. Starting off with just $500 - $1000 should be manageable and help you gain experience managing your finances within a responsible range.  
 
Apply for a credit card through Northern Birch 
Northern Birch offers an array of credit cards, most of which are available to students and young adults.  

Get in-touch with our lending team today to get started!
Click HERE to browse through our credit card options.


To apply for a Northern Birch Collabria Mastercard, you must be an active member of NBCU for a minimum of 3 months. Cards are only available to residents of Canada. Must be 18 years of age or older to get a credit card.