Credit is Good.

By: Andrew Bell

I grew up in a poor or lower middle-class family as I’m sure some of you reading this have as well. Through the bad choices and poor money management decisions from my parents had a strong influence on me. Things I’m sure you have all heard some version of. Things such as “Never use credit cards, they are impossible to pay back.” or “These companies take advantage of people.” these good-hearted but misguided lessons echoed in my mind for years. However, as an adult, you begin adventuring out into the real world and meet new people with different ideas and get exposed to thought processes you wouldn’t otherwise hear.

What my parents didn’t teach me was that credit is the financial reputation of those who are participating in the economy. At the most basic level, a credit score indicates how risky you are to those who will be potentially lending you money. A higher credit score indicates a low risk to a financial institution and they will be more likely to lend you more money at better rates. This is an amazing tool for everyone, even those who take the advice of Dave Ramsey’s “Pay cash for everything”. With the amazing benefits of cash back, hotel rewards, double or triple points, and even sky miles educated and empowered consumers should feel comfortable taking advantage of these incentives.

If you shift your thinking of credit from “I’m spending my money with interest” to “This Company has promised to give me gifts for spending their money.”, your financial life can blossom in a whole new way. A good credit score is not only suggested but required to do all of the amazing things the “American Dream” has to offer. Starting your own business, owning a home, driving a nice car.

People suffering from bad credit aren’t bad people. They just haven’t had the information to make the correct decisions with their finances. No one sat down with them and explained how to better their situation. These people can avoid larger, more expensive, and long-lasting issues by just getting started doing something instead of doing nothing. Don’t just sit there and let life bombard you.

Fixing your credit can seem like an enormous mountain. You’re standing at the bottom with no hope or knowledge on how to make the climb. But I want to encourage you today to seek out that knowledge and ask for help.