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Why is Credit Important? How Can You Build Good Credit? / By Janel Ray


Has it ever occurred to you that you can own your dream car or your dream house? If this is a goal for you, then you need to know how to build a good credit. Why credit is important? Having good credit means that you’re a low-risk borrower and lenders may then give you lower interest rates and better terms on loans. Bradley Couch, teacher at Chicago Military Academy, says that “having a good credit score means that the person who borrows money is most likely to pay it back.” Having a good credit score will show that you’re financially responsible.

What will have the biggest impact on your credit score? Your credit payments and level of debt will have the biggest impact on your credit score ( I bet you’re probably wondering how you would go about building a good credit. According to the Balance Credit & Debit, “practice good habits to build your credit by making 100% of your payments on time and keep your credit utilization low — utilization is your balance when compared to your limit.” (, 2017).

Toira Baker from Economic Awareness Council believes that credit is important because “it’s important to pay your bills on time and [good credit] allows you buying power. Having a credit score 750 and above allows a person to buy higher price items with a lower interest rate or being able to rent an apartment without having a consignor or higher deposit amount.”

What do teens need to know about credit? Toiria Baker commented that it was important to know that “people who use credit cards often spend more compared with those who use cash or checks. [Practice with a debit card first to get used to buying with a card.] Young people are more likely than older adults to charge up to their credit limit. But to get a top credit score, it’s best to hold your charges to 30% of your credit limit, or even less.”

While it’s important to wait until you are ready and more financially experienced to get credit, eventually building GOOD credit should be an important part of your overall financial plan.


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