The US is a very credit-based economy. People often need to borrow money for a variety of reasons: buying a home, a car, starting a business or in case of emergencies. Your credit rating is how many businesses gauge your reliability and trustworthiness. You wouldn’t just loan a bunch of money to a complete stranger, right? But if you can be trusted to pay off your credit card bill consistently, companies and banks are more likely to trust you as well.

Using a credit card responsibly for everyday purchases is a great way to build a strong credit history — a history that will benefit you in a number of important ways throughout your life. For example, it can help you when:

Renting an apartment

Landlords will check your credit history. Oftentimes, they’ll reject people with poor scores or charge them a higher deposit.

Buying a home

Solid credit often means you can secure lower mortgage interest rates because the bank trusts you. Over the course of a 20-year mortgage, that adds up to a lot of money you can save!

Buying a car

Many Americans take out loans when buying a vehicle. Poor credit means you’ll likely have to pay higher interest rates and give them a larger down payment — and nobody wants to do that.

Applying for a job

More and more employers run a credit check as a measure of how reliable you are. In a tight market, you might miss out on your dream job if your credit isn’t good.

Starting your own business

Having a business of your own is truly a part of the American Dream. If you’re looking for a business loan to get started or expand your business, your personal credit history will affect your ability to get a loan. A good credit history might score you a lower interest rate.

Better insurance rates

Insurance companies often use your credit rating when they set the rates for things like homeowners insurance, auto insurance and life insurance. A better credit history can help you save money.

The importance of establishing good credit applies in many other situations as well, and the stronger your credit, the more companies want your business and are willing to give you their best deals. Ultimately, that’s money you can save to achieve more of your goals.

You can start building that credit history by using a credit card. There are plenty of credit card options in the US, and as you do your research you’ll likely find different credit cards that meet your needs. One credit card in particular is a Deserve card, which is designed specifically for those trying to build their credit in the US, like international students. A credit card is great for everyday purchases, and if you pay off your bill every month (or at least the minimum balance) you’ll quickly see your credit rating rise and more opportunities open up for you.

Just remember who gave you this advice when you’re rich and famous. 🙂

This post is brought to you by Deserve and has been re-published on the CampusSIMS blog with Deserve’s permission. Deserve is a digital-first, mobile-centric, highly configurable credit card solution that uses machine learning and alternative data, Deserve partners with universities, associations, financial institutions, fintechs and modern consumer brands to develop, rapidly deploy and power white label and co-branded credit card programs for any audience. The cloud-based platform also provides millennials and Gen Zs fair access to credit products and the tools to achieve financial independence. They’re award winning EDU card offers great benefits for international students without Social Security numbers and domestic students. Cardholders can receive Amazon Prime Student on Deserve, 1% cashback, no international transaction fees and $0 annual fees. For more information, visit deserve.com.