Why is establishing credit important at a young age?

Establishing credit at a young age is crucial because a credit history is often required for significant life decisions, such as renting an apartment and financing a car. Landlords typically check a prospective tenant's credit score to assess their reliability in paying rent. Similarly, lenders use credit history to determine if an individual is a good candidate for financing options, such as an auto loan. Building a strong credit history early on helps individuals secure these essential services when needed, making it a foundational aspect of financial independence and responsibility. By establishing credit and maintaining it well, young people can set themselves up for smoother transitions into adulthood, particularly when facing situations that require financial assessments.