Why We Have to Stop Being Afraid of Credit
The idea of credit has always been a bit scary for me. My caution was never based in over spending, instead my reservations stem from the negative connotation around "credit". I hear advertisers blabbing about "Good credit" and "Bad credit", I hear people on TV talking about their crushing credit card debt, and my friends are always talking about how they can't afford their student loan payments. It is stressful.
I didn't want to get involved with something seen by so many as a source of anxiety. I had to rethink the idea of credit and train myself to see through the negative headlines. I knew I needed to start building a credit history now because length of credit history has an effect on the other all score. The longer I put off owning a credit card or getting a car loan the harder it would be for me to get a low interest loan in the future. So I made a strategic plan to get rid of the my credit phobia.
- Understand how credit is measured.
- Start building credit
- Pick out Credit Card design (not an actual step, but probably my favorite part of the whole process)
- Set up My Alerts to make sure you remember when to make payments
- Use the card and track spending (or enjoy your vehicle), and always make regular payments.
Halley Baars is Oregonians' Marketing Outreach Coordinator and has been with the credit union since 2015. She spends most of her days mingling with other community leaders and spreading the credit union word.