Credit is a cornerstone of financial health, yet it’s often misunderstood. Good credit affects everything from mortgage rates and car loans to rental applications and insurance premiums. Establishing and maintaining a strong credit score helps demonstrate reliability to lenders, reducing borrowing costs and improving access to financial products.

Credit cards, when used responsibly, can be powerful tools in building credit. Timely payments, low utilization, and long account history contribute positively to your score. In addition, many credit cards offer rewards and consumer protections, like purchase security and fraud liability, that debit cards don’t always provide.

However, credit is only beneficial when managed wisely. High-interest debt and missed payments can quickly erode financial stability. The goal isn’t to avoid credit altogether, but to use it strategically, so it enhances, not hinders, your financial future.