In your financial world, your credit history is almost as important as the amount of money in your bank account. Whenever you make a financial move, your credit history will be right at your heels, helping you move forward…or holding you back. When you try to apply for a credit card, get a mortgage, open a checking account or even hook up a phone, your credit will be checked. And a lack of credit history can be seen as just as risky to lenders as bad credit because they have no proof you can pay your bills. So needless to say, the sooner you establish good credit, the better off you will be.

 The price of bad credit or no credit

If your credit report is riddled with late payments and “maxed-out” credit cards, or if you have no established credit history at all, it will cost you money in the long run. If your credit report and credit score reveal to lenders that you pose a potential risk, they will add a premium to the money you borrow to protect themselves. Individuals with bad credit scores pay dramatically different interest rates (and thus, dramatically different monthly payments) on similar loan amounts than their good credit score counterparts.

It’s also important to keep in mind that good credit is fragile—one wrong move can make a significant mark on your credit history and lower your overall credit score. For instance, if your credit card company neglects to send your bills to your house, or they send them to you late, you are still responsible for all unpaid or late amounts. And late or unpaid credit card bills quickly show up as negatives on your credit report because credit card companies are the first to report financial delinquency to credit bureaus.

When it comes to your financial future, the sooner you can establish a positive credit history, the better off you will be. But first, you must know where you stand by obtaining a copy of your current credit report and credit score.