<p>Okay. I’m an idiot: What is credit? What is credit history? Etc??</p>
<p>Are you talking about financial credit or academic credit?</p>
<p>Credit history pertains to financial credit. How timely are you in making payments on due bills (credit card, mortgages, car payments, electricity and gas…) Do you have a history of bounced checks? overdrafts? etc…
If you want to buy a house, it will be important to establish that you have a good credit history, that you pay your bills on time, that you don’'t owe tons of money to someone else. etc… For this purpose, it is helpful to have a credit card and make use of it prudently for several years before you need to prove you are a credit worthy person. </p>
<p>Is that what you are asking about?</p>
<p>Yes. Thank you. So technically I have no credit history I guess. No credit card yet. :/</p>
<p>bluealien - If you have a credit card on your parent’s account, but with your own name on it, you will actually have begun to establish a credit history. If not, that is one possible good way to start building a good credit history. Another is to get your own credit card, either with or without a “secured” limit. Even a gas company credit card will start to build a history.</p>
<p>Building a credit history is a good (and eventually necessary) thing. Rule #1, 2 and 3: Charge only what you can afford with current savings/income. Pay each bill on time. Pay each bill IN FULL (not the “minimum payment”) so that you do not incur interest charges.</p>