Growing up, my immigrant parents taught me the importance of only buying what I could afford. Naturally, this meant avoiding credit. However, once I hit my 20s, I realized that in the U.S., credit isn’t just necessary—it’s powerful when managed well. Understanding credit can open doors you may not expect. Let’s explore three ways good credit can boost your financial power:
1. Land a Job.
Did you know employers might check your credit during background checks? They want to see how well you manage financial responsibilities. A strong credit history can signal trustworthiness and reliability—qualities that can make a difference in your job search.
2. Get Housing
Similarly, landlords often check your credit score when you apply for housing. If your score is low, you might need a cosigner or be required to pay a larger security deposit. And remember, if you don’t pay your rent, your cosigner will be responsible. Good credit simplifies the process and gives you more control.
3. Get a Cellphone
Even wireless providers check your credit before signing you up for a plan. Without good credit, you may have to get a cosigner or become an authorized user on someone else’s account.
Take Control of Your Credit Journey
Managing credit might feel overwhelming at first, but it’s key to financial success. With good credit, you can land better jobs, secure housing, and even enjoy simple things like a phone plan without the hassle. It starts small: monitor your score, make a plan, and stick with it. Together, we can take control of our financial journeys—one step at a time! If you’re not sure where to start, check out our tips for building and managing your credit.
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