The Housing Struggle: Why Young Adults Need to Build Credit Early

For many young people today, the idea of buying a home seems almost impossible. In Utah, as well as in many parts of the country, home prices are climbing faster than wages, and with student debt weighing heavy on so many of us, the dream of homeownership can feel like it’s slipping further away. But there’s one factor that could make all the difference in credit. Building your credit early can open doors that might otherwise stay closed, especially when it comes to buying a home.

A credit score is one of the first things a lender looks at when deciding whether to approve you for a mortgage. If you have a low score or no credit history at all, you might struggle to get approved or be stuck paying much higher interest rates. The earlier you start building credit, the more time you have to develop a positive history, which can translate into better loan terms and more affordable payments down the road.

Unfortunately, most young adults don’t realize how important their credit is until they’re trying to make a big purchase like a home or a car. Many people reach adulthood without ever having used a credit card or taken out a loan, leaving us with no credit history. In Utah’s competitive housing market, that can be a major disadvantage. Without good credit, finding an affordable place to rent or even being able to qualify for a mortgage becomes significantly harder.

To set yourself up for success, it’s never too early to start building credit. A student credit card or becoming an authorized user on a family member’s account are simple ways to begin. The sooner you start, the better prepared you’ll be when the time comes to buy a home. In a world where the dream of homeownership feels more and more distant, a strong credit score could be the thing that finally brings it within reach