She Strengthens

The Power of Credit: Turning Fear into Financial Freedom

Breaking Free from Misconceptions

Growing up, I was warned about the dangers of credit cards. My grandmother would regale me with horror stories of debt and financial ruin, and I was led to believe that credit cards were the root of all evil. So, when I received my first credit card offer in the mail at 18, I was skeptical. My grandmother would encourage me to shred each offer, and I was convinced that credit cards were not for me.

A Crash Course in Credit

Fast forward to my senior year of college, when I applied for my first credit card. With a 680 credit score, I was approved for a Chase Freedom card with a $1,500 limit. I thought I was doing everything right, paying my bill on time and using the card responsibly. However, I soon realized that I was making mistakes. I only paid the minimum balance due, and I had no idea how much interest I was accumulating on my remaining balance. To make matters worse, I was consistently late with my payments.

The Consequences of Ignorance

When I checked my credit score a year later, I was shocked to see that it had plummeted to 500. I was devastated, and all those horror stories came flooding back. In a panic, I closed my Chase card, thinking it was the smart thing to do. But, to my surprise, my credit score dropped even further. It wasn’t until I started making changes to pay off my debt and educate myself on credit that I began to see improvements.

A Newfound Appreciation for Credit

It wasn’t until I discovered the world of points and miles that I began to see credit cards in a new light. I learned that with the right strategies and knowledge, credit cards could be a powerful tool for traveling the world and maximizing my spending. But, to get the travel cards I wanted, I needed to have excellent credit. I started reading articles on how to quickly build my credit score, and I realized that time was the key.

The Journey to Excellent Credit

I applied for a basic Capital One credit card and used it responsibly for a year and a half. I paid off my balance in full each month and constantly checked my credit score. Finally, I reached a score of 690, and I was ready to apply for a travel credit card. Although I was initially denied, I didn’t give up. I waited, and after a few months, I tried again. This time, I was approved, and my credit score soared above 700.

Mastering the Art of Credit

I threw myself into researching and learning about points and miles, and I became fascinated by the complexity and strategy involved. I practiced converting points to dollars, researching which hotels and airlines I could transfer to, and calculating how to get the most points in return. And then, COVID-19 hit, giving me the ultimate gift: time. With the world shut down, I was able to stack up on points and miles, and my credit score continued to rise.

The Power of Credit

Today, I proudly boast a 750 credit score and four credit cards in excellent standing. I’ve learned that having a credit card is not just about owning one; it’s about understanding the responsibility that comes with it. Your credit score and history hold significant weight when it comes to achieving financial milestones. By taking control of my credit and educating myself, I’ve been able to turn fear into financial freedom.