{"id":8663,"date":"2025-11-16T23:05:29","date_gmt":"2025-11-17T04:05:29","guid":{"rendered":"https:\/\/blogs.shu.edu\/stillmanexchange\/?p=8663"},"modified":"2025-11-16T23:05:29","modified_gmt":"2025-11-17T04:05:29","slug":"why-credit-is-good-and-why-you-should-build-it","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/stillmanexchange\/2025\/11\/16\/why-credit-is-good-and-why-you-should-build-it\/","title":{"rendered":"Why Credit is Good and Why You Should Build It"},"content":{"rendered":"

Saidy McQuillan<\/strong>
\nStaff Writer<\/strong><\/em><\/p>\n

Credit is probably something that you hear about all the time, credit cards, credit scores,
\ncredit reports, however it’s one of those topics that often feels a little mysterious until you
\nactually need to use it. The truth is that credit is one of the most important aspects of your
\nfinancial life. Whether you\u2019re applying for a car loan, an apartment, or preparing for your
\nfirst big job, credit quietly shapes the opportunities that are available to you.<\/p>\n

Beginning by building credit early isn’t just about having a number on your credit card app;
\nit’s about building trust with the financial system. A credit score is a metric of your ability to
\npay back debt and tells lenders how likely you are to actually pay back the money you
\nborrow. Having a good credit score opens a variety of doors, saves you money in the long
\nrun, and gives you flexibility when life happens.<\/p>\n

Why Credit Matters More Than You Think<\/strong><\/p>\n

\"\"
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Image courtesy of iStock<\/strong><\/figcaption><\/figure>\n

Credit matters because it can impact nearly every area of your adult life. As an example,
\nsay there are two people applying for a car loan. One has a solid credit history, and the
\nother has never used credit before. The first person might get approved instantly with a
\nlower interest rate, while the second either gets denied or pays hundreds more over the life
\nof the loan via a higher interest rate. The difference is their credit, as one has shown the
\nability to pay back their loans while the other hasn’t.<\/p>\n

Your credit score affects much more than loans, too. Landlords often check it before
\napproving rental applications, or employers use it as part of background checks. Even your
\nphone carrier or insurance company might base your rates on a credit score. A good credit
\nscore shows that you’re dependable and financially responsible, which can pay off in a
\nmultitude of ways.<\/p>\n

Also, credit is essentially a safety net; life is not always predictable. It is possible that an
\nemergency, medical expense, or change in job may occur unexpectedly. So, if you keep a
\ncredit card or a line of credit with a balance that is within your means, it will be able to help
\nyou get over those periods without taking out of your savings.<\/p>\n

How Building Credit Actually Works<\/strong>
\nCredit builds gradually, through habits and consistency. You start building credit by having
\na loan in your name (ex. A student credit card, a secured card, or a small loan). Each time
\nyou make a payment on time, that information gets reported to a credit bureau. Over time,
\nthose payments build a history that tells lenders you are someone who can pay back your
\ndebt.<\/p>\n

One of the main things that determines your credit score is your payment history, so it is
\nvery important that you do not miss a payment. The next most important factor is the
\npercentage of your available credit that you use. For instance, if you have a credit card with
\na $1,000 limit, it is recommended that you keep your balance below $300 (A widely used
\nguideline is that the credit utilization should not exceed 30%). To be granted credit in a
\nresponsible manner is a sign of good practice, and therefore lenders will offer you more
\nattractive deals, increase your credit limits, and reduce interest rates.<\/p>\n

Length of credit history also matters. The earlier you start, the better. Even a simple credit
\ncard used for small purchases and paid off monthly can lay the foundation for years of
\nstrong credit. Overall, the goal isn’t to take on debt, but to show you can handle credit.<\/p>\n

Common Myths About Credit<\/strong>
\nA lot of people are hesitant to start using credit because they’re afraid of debt. It’s a fair
\nconcern, but the key difference is how you use it. Having credit doesn’t mean you’re in
\ndebt. It just means you have access to borrowed money. If you pay off your balance every
\nmonth, you avoid interest entirely and still build your credit history.<\/p>\n

Another myth is that checking your credit score hurts it. That’s not true when you check it
\nyourself. Only \u201chard inquiries,\u201d like applying for multiple loans within a short period, can
\nslightly lower your score. Keeping track of your credit mitigates this risk by ensuring you
\nstay on top of your score and report any errors to your credit company.<\/p>\n

Why You Should Start Now<\/strong>
\nIf you were a student or just starting your financial journey, I would say that this is the best
\ntime to start. Credit history takes quite a while to develop, so even small steps today will
\nbe very helpful to you in the future. Put a credit card to use for groceries or gas, pay the
\ncredit card off every month, and watch as your credit score increases.<\/p>\n

When the time comes to buy a car, move into an apartment, or even start a business, your
\nfuture self will definitely thank you. Having good credit is similar to having a strong
\nfoundation; it makes everything else easier to build on.<\/p>\n

Therefore, credit is one of the most potent instruments you can own for independence and
\nopportunity, even if it doesn’t seem urgent at the moment. Use it wisely, and it will open
\nnew opportunities for you in the future.<\/p>\n

Contact Saidy at saidy.mcquillan@student.shu.edu<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Credit is one of the most important aspects of your financial life. Whether you\u2019re applying for a car loan, an apartment, or preparing for your first big job, credit quietly shapes the opportunities that are available to you.<\/p>\n","protected":false},"author":4872,"featured_media":8665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1773],"tags":[1711,1798,1799,423],"class_list":["post-8663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-literacy","tag-1711","tag-credit","tag-credit-score","tag-november"],"_links":{"self":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/8663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/users\/4872"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/comments?post=8663"}],"version-history":[{"count":2,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/8663\/revisions"}],"predecessor-version":[{"id":8666,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/8663\/revisions\/8666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/media\/8665"}],"wp:attachment":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/media?parent=8663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/categories?post=8663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/tags?post=8663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}