The Importance of Credit


It’s a double-edged sword: you have to have credit to get credit, but if you have too much credit it counts against you with the credit agencies — the guys who control whether you get credit or not. It’s a perpetual cycle — and in all honesty — a game. You learn the rules to the credit score industry, and you play by them, like it or not.

The International Association Of Credit Engineers, a company that counsels individuals to use their credit capital or credit capital solutions to finance their dreams, helps individuals through fixing their credit and then consulting on how to use their credit to their advantage. Contact us today to get started!


So what is credit and why should you care? Credit at its core is the ability to buy goods and services now and pay for it later. It’s a promise you make to the credit lender, and every time you swipe your credit card, you are making this promise. Credit is given by a creditor, or lender, to a borrower, or debtor. Most of us don’t like the term debtor (although if the debtor was used more often, people would probably have less debt), so you’ll hear borrower more often.


It’s obvious “debtor” comes from the word “debt”. The word “credit” was first used in English in the 1520s. Borrowed from the French word exactly, “credit” meant “trust” or “belief”. However, like half of the English and romance language words, credit has Latin roots, from the verb “credere”, meaning “to trust, entrust and believe.”

The foundation of credit is trust. Credit (without the word) has been around for millennia. Along with the barter system, which is where different goods and services and their amounts were exchanged, credit is the lending of something with the promise to get it back. Early humans would give goods such as fur coats to their fellow tribesman without payment, but with an agreement to receive some sort of payment in the future.

Credit has grown in sophistication over time, but the foundations are the same. We’ve gone from pen and paper calculations to computers who not only do all the calculations but also do all the documentation, processing, and, in some cases, all the approving as well.

Humans cannot survive without credit. Period. Early humans had to rely on one another just to survive daily existence. Now, we’ve moved from surviving to thriving. Our exponential growth both in population and in lifestyle was fueled by credit, from the Industrial Revolution to the Technology Age of today. The 21st century is the most prosperous in the world for all the world’s population. All because of credit.


The way our modern economy has evolved and functions is through credit scores. A credit score is a calculation based on five major factors: payment history, how much you owe, length of credit history, what kind of debt or credit you have such as secured loans like a mortgage versus unsecured loans like a credit card, and any new credit you’ve recently taken out. All of these factors are put into an algorithm that the three major credit agencies (TransUnion, Experian, and Equifax) use to create your credit (or FICO) score. This three-digit number controls whether you are extended credit or denied credit. Translation: a number determines whether your dreams come true or not such as buying your dream home or starting your business.


We’ve already mentioned a few reasons why you need credit, but let’s enumerate them below:

  1. To buy a house. Unless you have the cash, you’ll need a mortgage.
  2. To start a business. Unless you have the cash, you’ll need an angel investor or a bank, both of which are most likely in the form of loans.
  3. To get a job, rent an apartment, and get lower insurance rates. More and more companies require credit checks for services that are fundamental to life.

Can you live without credit? Yes. You can work a job, save your money, and delay having things in life. Would you want to live without credit? Probably now. We live in the “I want it now” age where everything better be instantaneous or we lose our minds: internet, coffee, and food. Do you really want to rent an apartment for 10 years to save up for your first home? Do you want to delay college? Do you want to delay any smaller purchases many of us use credit to make, such as a motorcycle, ATV, snowmobile, jet ski, a boat, a camper, a nice TV, exercise equipment, furniture, appliances, and, yes, even that purebred champion Great Pyrenees you’ve always wanted that gives you the most love ever.


Life is full of choices, and life is short. Most of us want to enjoy life with these little pleasures that keep us going to our 8-5 job when we’d rather play hookey and go to the beach, walk our dog in the autumn leaves, or leave early on a ski trip. We utilize credit — hopefully responsibly — to take the European vacation we’ve always wanted to do with our spouse, to climb Mount Everest, and to take our kids to Disney World. We create memories and hold them close.

The International Association Of Credit Engineers believe in maximizing credit capital to fulfill all of your dreams. We’ll help you get your credit in tip-top shape and then show you how to use your credit to achieve all of your dreams and more. With credit capital solutions, the International Association Of Credit Engineers are here to walk you through the entire process. We’ll begin with a thorough credit review and then we’ll sit down with you to discover your hopes, dreams, and goals for your venture. We help entrepreneurs garner credit capital as well as help entrepreneurs with monthly cash flow in our credit capital solutions program. We’ll answer any questions you may have and explain our offerings, including credit counseling services and credit capital solutions, thoroughly. Contact us today!