skip to Main Content
Why Do I Need Credit?

Why Do I Need Credit?

Credit is one of the single most important things you will need in your adult life. Credit is used for everything from applying for a loan to getting car insurance. (Yes, car insurance companies will raise your rates if you don’t have good credit.) That’s why it’s so important to start building credit as soon as you’re able to. It’s even more important to maintain a good credit score, if you plan on applying for a loan any time soon.

What is my credit score a factor in?

Here is a short list of some (not all) things you might need credit for:

  • Loans (auto, home, personal)
  • Applying for an apartment
  • Car insurance
  • Utility companies
  • Cell phone carriers
  • Applying for a job (yes, some employers can pull your credit report)

Why does my credit score matter?

Credit pretty much shows the world how good your word is. You tell the lender if you give me $10,000 to buy this car, I promise I will pay until the end of the loan. If you complete those terms, this tells the world you know how to keep your word. Needless to say, having good credit is needed for almost everything in today’s society.

What if you don’t have good credit?

One of the best ways to build your credit is with a credit card. A share secured credit card is a great place to start with bad credit. A secured card requires a cash collateral deposit that becomes the credit line for that account.

For example, if you put $500 in the account, you can charge up to $500. The reason for having a secured card goes far beyond being able to buy things. It’s a way for building a good credit history. If the issuer doesn’t report, you’ve lost a major benefit. (Tip: If you start getting mailers offering you unsecured cards after you’ve made several months of payments on time, you’ll know that the issuer is reporting.)

When learning to build or repair credit, I recommend visiting your local credit union for a secured credit card. Fort Worth Community Credit Union offers secured credit cards at competitive rates and reports to credit bureaus monthly. For more information visit or visit a branch today!


This blog was written by Glysson Herrera, FTWCCU Financial Services Assistant.