Credit Doesn’t Have to Be Scary: How to Use It to Your Advantage

Credit has a reputation problem. If you’ve heard horror stories about maxed-out cards, mounting debt, or people stuck in a financial hole for years it’s understandable if your instinct is to steer clear altogether. Why risk it, right?

Here’s the Catch: You still need it

Avoiding credit entirely can come with its own set of problems. No credit history means it’s harder to rent an apartment, qualify for a car loan, or get a decent rate on a mortgage later on. The truth is, credit is baked into how our financial system works. You don’t have to love it, but learning how to navigate it gives you a major edge.

Credit isn’t good or bad on its own, it’s how you use it. Yes, credit card companies are businesses. They profit when people carry balances and pay interest. But if you understand the game, you can flip the advantage back to you.

Credit isn’t the enemy, its a tool

Here’s one way to do that: Instead of using a credit card for random purchases or “just in case” spending, set it up with one small recurring payment, like your Netflix subscription or your phone bill. Then set the account to auto-pay the full balance every month. That way, you’re building a history of on-time payments and low usage, which are both great for your credit score. You don’t even have to think about it.

Worried about overspending? try this

If you’re worried about temptation, here’s a trick: after setting it all up, physically cut up the card. Keep the account open, but remove the urge to swipe. You’ll still be building credit in the background without the risk of impulse spending.

stay in control, not in the dark

There are other habits that help too, like checking your statement regularly, even if you’re not actively using the card, and watching out for fees or unauthorized charges. Staying engaged keeps you in control. The credit system wants people to mess up, it profits when they do. But,  you don’t have to fall for it.

Start small, Be intentional. Use the system to your benefit, not the other way around.

Ready to build credit on your terms?

If you’re ready to start building credit, the GHS Visa® Credit Card is a great option. With no annual fee and easy account management through online banking, it’s a solid tool to start building your financial foundation on your terms.

And if you're not sure where to begin, we're here to help. Stop by your GHS branch or give us a call, our team is always happy to talk through smart credit habits and help you build a financial plan that works for you.

*APR = Annual Percentage Rate. 0% APR introductory rate and then, 7.90% APR to 17.90% APR fixed rate after the first six months. Rate shown is “as low as.” All loans subject to credit approval. Rate and term to be determined based on credit worthiness. The rate will not increase while the plan is open. Refinancing of existing GHS FCU loans do not qualify. Cannot be combined with any other offer. Credit Union Membership required with a $1.00 minimum deposit and $1.00 membership fee. Some restrictions may apply. Rates and terms are subject to change.