We all need credit. Credit plays a huge role in our society today. From being approved for an apartment lease, to purchasing a car, to buying a home: all of these things require a good credit score. Yet, many US households self-report that they do not understand the factors that make up a credit score, so it is difficult for them to obtain the score that they will need to get a better loan rate.

Additionally, personal finance website Nerdwallet reports that the average US household carries over $15,000 in credit card debt! How can anyone manage that?

If a family were to only make the minimum payment on that debt each month (i.e. interest + 1% of the outstanding balance at 18% interest), it would take a whopping 382 months to pay that kind of debt off. That is over 31 years!

Why Your Family Should Ask More About Credit

Why Your Family Needs to Ask More About Credit

With such a problem prevailing in our society, it is clear that the answer is taking the time to be educated about the subject. If you aren’t already, you should be training your children on how to manage credit as well. Perhaps consider starting them out on a secured credit card at your local bank while training them on the factors that make up a credit score and how credit is not free money.

Meanwhile, if you own and operate a business and you don’t fully understand credit yourself, consider having a discussion with your local banker to try and understand further so that you can make optimal decisions regarding business loans and your own business credit cards.

Alternatively, you can read more about credit with a free report from Equifax, one of the three main credit bureaus. In it they explain the different factors that make up a credit score, how you can positively affect these factors, and things you should avoid when making credit decisions.

Credit Should Be an Opportunity, Not a Fear

Truly, credit can be extremely advantageous when used properly. Don’t think of it as something to be feared. Rather, view it as a challenge to be conquered. Find out more about your personal credit, and the companies that lenders may use for their credit services like NCC Direct,inc.,  so you have all the information you may need to use credit wisely.

If you are looking to learn more about how you can use credit to your advantage or the advantage of your clients, you should consider paying them a visit!