The Power of Credit

Curtis G Martin

By Curtis G Martin

An excellent credit score is a prerequisite for everyday financial services like a low-cost credit card, a bank account, or a car loan.

Credit is an essential and powerful tool for customers and companies. Access to the resources that credit presents to help aid the purchase of important assets that otherwise would not be achievable or even probable. Imagine how your personal story would be changed if you were unable to receive a mortgage, car loans, or even credit cards. For most middle-class Americans, that would indicate we could not own a house, send our kids to college, or have access to money in emergencies. 

 While credit is a fundamental tool that can additionally be used for leverage to make our lives pleasant, access to credit isn't an actuality for all. Surveys have revealed that 30 percent of families don't use credit and that 10 percent of families use a nonbank credit such as payday loans. 

Access to credit is a valuable tool that can assist with strengthening our communities, notably when it is accessible to all residents. When used correctly, credit allows you to create wealth and promote financial health. Some analysis says that the principal driver of wealth for ordinary Americans is their capability to own real estate. 

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When you can qualify to purchase a home, you are investing in yourself. You're building equity every time you make a mortgage payment. When the property's worth increases, the capital raises, even more, increasing your net worth. When you have a feeling of wealth, you're more than likely to spend money on your wants and needs while feeding the economy of the neighborhood.

Homeownership has a compounding impression on a neighborhood. Homeownership promotes stability guided by improved maintenance, extended occupancy, and an overall improvement in property values. 

As a mortgage serves to create wealth, lines of credit and credit cards assist us with dealing with life's ups and downs. Effective use of credit cards allows you to understand the impact of unanticipated costs. You can take advantage of an investment opportunity that wouldn't be possible when depending on cash or savings. An excellent credit score allows you to obtain more credit continuously and can even help you secure employment. 

A small business owner and entrepreneurs can also be affected by the ability or failure to obtain credit. Credit is a need for companies to run and grow. It can support acquiring supplies and equipment. Also, it can help manage inventory. It can allow companies to develop technology to improve processes or purchase real estate. When a business is unable to obtain the credit, they are incapable of getting started, operating, and growing. Banks are essential organizations in giving the credit needed to help customers, companies, and communities achieve their goals. Deposits in banks allow them to produce loans that eventually create growth, economic activity, create wealth, and community success.

Consumer Lending:

Consumer loans, like a mortgage loan, automobile loan, or a personal loan, can determine the difference in owning a house or not. 


Credit is a powerful tool that can represent a meaningful role in the progress of an individual, company, or community. It provides access for people and companies to create wealth, endure rough patches, and reach monetary goals. When each person and business can flourish, the whole community benefits.

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