Developed by : Freelancing Care

How Do I Find Out What Credit Is Really For?

Credit: From Liability to Asset 

Have you ever looked at your credit scores and wondered, “What is the purpose of having credit if it is just going to become bad anyway?”

Have you ever received a notice about a collection and wondered why you needed to worry about credit at all?

I have.

When my identity was stolen, I received notice after notice in the mail.

I was overwhelmed by the hundreds of dollars I owed that I wasn’t even responsible for.

I wondered why credit even existed if someone could misuse it and destroy it without you being in control.

I hated my credit for making me feel so helpless.

I wondered why someone knew how to misuse my credit better than I could have known how to protect it.

Credit has a greater purpose than just scores and approvals


It is easy to look at credit as credit cards, bad credit, debt, credit scores and approvals.

The majority of the work we do on our credit only involves these five areas.

We are all familiar with the hard work of recovering your credit, the sense of just not being sure about how to build your credit properly and the fear of using your credit in case something should go wrong.

These are not the purposes that are intended for our credit in the first place.

Our lack of knowledge about credit as an asset has caused credit as a liability to take a major role in our finances.

Have you ever wondered why you don’t have the money to accomplish your dreams or build a business?

Have you ever wondered why you can’t seem to get the footing you need to live a quality lifestyle or why you can’t overcome a particular income plateau?

I certainly have!

But then I learned that credit is the missing piece of that puzzle.

Credit is the stepping stone you need to begin living the lifestyle you have always wanted to live.

It is just a matter of becoming aware of what your credit is supposed to be used for and how to build it to that point.

5 Ways To Find Out The True Purpose Of Credit

There are 5 ways that you can begin to understand what the true purpose of personal credit is for so that it can begin to benefit you like an asset in your life.

  1. Get your free copy of the Credit Mastery Handbook: Get Approved, Lower Your Interest Rates & Save Thousands of Dollars. This best-selling book will answer valuable questions about what credit really is and what it should be used for.
  2. Study the power of OPM. OPM is Other People’s Money. The rich use OPM to gain their wealth. Every person isn’t trying to become rich in their life, but if you want access to more resources than you have from your job or in your immediate reach in order to be comfortable and achieve a standard of quality of life, you have to learn the value of being able to borrow more money that you would have access to by yourself.
  3. Learn about the importance of paying interest. When someone loans you money, they want to make money from the money they loan you. The payment they get for loaning you money is called interest. The more trustworthy you are, the less interest you will have to pay.
  4. Understand the difference between Good Debt and Bad Debt. All debt isn’t bad. When you take out a debt, it will either force you to pay money you get from some other means to pay it back, or it will give you money to pay itself off and provide you a profit at the same time. If your debt is forcing you to pay it with other money, then it is a bad debt. If your debt pays itself off and provides you a profit, then it is good debt. It will eventually pay itself off completely and give you 100% profit.
  5. Learn about using credit as collateral. When you have access to collateral, you take risk away from people who would loan you money, and the amounts of money you will have access to become exponential. Turn that money into good debt and you have learned the true purpose of accessing credit.

The more you learn about what your credit really should be doing for you, the more empowered you feel and the more capable of achieving the accessibility of life you become.

If you are interested in starting the approval process off with raising your credit scores for free, I invite you to take my free, four-part, Dispute Letter Mastery Course.

In this course, you will learn how to update your personal information, dispute information that has errors, and delete negative information in order to raise your credit scores 50 – 75 points in only 45 – 60 days. A boost like this can really make a difference in your interest rates, and it is all free.


  1. Credit is a very important part of everybody’s well being. Even rich people can get in over their head financially and the more information there is out there in blogs such as yours the better people will be informed. Understanding the difference between good credit and bad credit is important.

    • Hi Steve,

      Thank you for your comment. Every person can benefit from the proper use of credit. The rich borrow money all the time in order to make their own wealth reach even further. The key is not to get into any debt without having a way to pay that debt back and without that debt being able to provide you a monetary benefit for its use.


  2. I want to let you know that I appreciate your help in showing me the importance of learning how to look at credit as something that can be an asset instead of a liability. I definitely have been in the position of carry high debt on my credit cards. With your help I’m sure that many folks like myself will be able to learn how to use our credit to our advantage instead of to our detriment. You are providing a much needed service when you consider how many in the world have problems with their credit. I look forward to reading more of your informative and useful tips. Thank you, Richard

    • Hello Richard,

      Thank you for your comment on this post. I appreciate people like you giving me feedback on the importance of the posts that I am writing. After my credit was badly misused and my identity was stolen, I began to ask deeper questions about why something that could be so damaging to me exists. What I found was that credit has a purpose of giving me the life that I truly want if I use it as collateral. I wouldn’t have found that answer if I hadn’t gone through the trials of asking questions.

      Anyone who uses credit cards for emergencies and for small purchases with no plan faces the reality of having problems with their credit. It simply doesn’t have a goal or purpose other than minimal use to just exist. I hope this website serves as a valuable resource to change our mindset about credit and help us to master it toward the purpose of a quality life.


  3. This is a great article you have here. Must read for everyone. Well laid out. Unfortunately there are too many people who don’t understand the importance of credit and how it works. I can’t stress to my kids enough about it. I have sat with all of them explaining it to them and why they need to make sure they keep their credits clean.

    When I was growing up I didn’t understand it and got myself into bad debt. I now budget wisely and make sure I make my payments on time to keep my credit in good ratings. Thank you for sharing.

    • Hello Tanya,

      Thank you for your comment. You are providing your children with an excellent foundation. Knowing what to do to create good habits is the first step to being able to use your credit to fund your dreams. Good luck to you and your children!


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