Let’s Make it Personal


Now that you understand credit as a concept, let’s apply it to you! In the space below, write down your financial goals for the short term (this month), medium term (this year), and the long term (next five years). Follow our example below:

Financial Goals (OppLoans example):
Short Term (this month):
  • Pay rent
  • Pay my gas bill
  • Buy concert tickets
Medium Term (this year):
  • Lease or buy a car
  • Fly to a friend’s wedding
  • Pay off all lingering payday loans
Long Term (next 5 years):
  • Pay off all my student loans
  • Buy a house
  • Build a $5,000 savings account

Your Financial Goals:
Short Term (this month):

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Medium Term (this year):

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Long Term (next five years):

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Take a look at what you wrote. How does this list make you feel? Excited for the future? Or nervous that you won’t be able to achieve your goals?

Well, with good credit, even your most ambitious goals will be much more achievable. On your list above, circle all the items that will require the use of credit. (Hint: If it’s a “big ticket” item like a car, it’s unlikely that you—or anyone—would be able to buy it with cash, so it will involve credit. When in doubt, circle your goal.).

It’s likely that all or most of your financial goals will require or involve credit in some way. Something small like concert tickets may not—and that’s fine—but a concert is a one-time event. Once that concert is over, it’s over. Larger and more important purchases and investments, like a house, have a much bigger impact on your life. And if you want to own your home, you can bet your credit will be an important factor when it comes time to apply for a home loan.

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