What is Credit?

Credit is the fuel for your passion and the pathway to your dreams.

Credit Takes You Where You Want To Go

Credit is not just a contractual agreement. Credit isn’t simply your ability to get products or services before paying. It’s not something that should plague you until you’re wrought with worry. And credit should definitely not make your life a waking nightmare; We’re not in an apocalypse, and you’re not a zombie. Credit is the fuel for your passion and the pathway to your dreams.

Want that dream job so bad you feel a second set of wisdom teeth coming in? What about your ideal house or that (fill in) you’ve always pined for? Imagine yourself giving your daughter the car she’s got her eye on for her sweet sixteen or sending your son on that backpacking trip as a last hurrah after graduation. Credit can help you accomplish things you thought you never could. That’s why it’s so important to be well informed about credit and make wise choices managing your own credit history. Open doors; Don’t close them. Keep your feet on the path you know you should be forging. If you’ve been derailed, it’s even more crucial now to educate yourself and to understand credit so you can fix yours.

Here's a basic breakdown for you. There are 4 types of credit:

  • Revolving- like a credit card allowing you to choose to carry over a balance or pay in full.
  • Charge Cards- an account that requires you to pay back the balance in full every month. 
  • Service Credit- an agreement you make to pay monthly such as cellular service, electricity access, or a gym membership.
  • Installment Credit- a contract with fixed payments set over an established period of time, like an auto loan or home loan (mortgage).  

Creditors grant credit to you based on your credit history (a record of whether you have paid creditors back). Our credit history is often what we’re referring to when we talk about “credit” since it largely determines a creditor’s confidence to loan us money. If you don’t have credit history (don’t “build” one) or create a “bad” history, it may cost you your dreams. 

For example, employers will often check your credit history when you apply for a job because they think it will show your habits. A bad history might hurt your chance to launch the career you’ve pursued as long as you can remember. Don’t crush kindergarten you. The same applies when you try to rent an apartment or buy a car with a loan - a good history can mean you get your castle in the sky. 

 Go where you want to go - not where life takes you.