Each year, Whatcom Asset Building Coalition promotes Credit Education Month throughout March. During the next few weeks, we’ll be posting articles, tips, and FAQs around credit. This year, we’ll be focusing on the relationship between debt and credit, with discussion and practical tips on how to identify and avoid predatory lending, build credit, and more.

To kick off Credit Education Month 2022, I met with WABC Steering Committee member Christine Walsh-Rogers. Christine is Product Strategy Leader at First Fed Bank, and has recently joined our committee.

The relationship between debt and credit is a complicated one, and a common misconception is that a credit profile can’t exist without implying some form of debt. Not so fast, says Christine. These days, there are ways to boost one’s credit or create a credit profile without necessarily going into debt. Increasingly popular are options for rent reporting, or requesting that utility or other regular payments to be included in a credit report. Experion Boost is one option for getting smaller, automated payments to be represented as part of the credit profile. And unlike very large banking institutions, smaller community financial institution such as First Fed have the ability to take a closer look at a person’s entire financial picture and all the alternative ways a person can establish financial trustworthiness when applying for loan products or accounts. In a nutshell, it’s not just about the number in a credit score, and alternative credit building products are out there.

Is there any such thing as “good debt,” or should it be avoided at all costs? There can be, explains Christine. Debts that inherently increase your own assets or wealth can be considered beneficial. For example, a vehicle loan that allows you to purchase a car and successfully commute to that higher paying job or seek employment, would be considered good debt. “There is a really important human element to banking,” she explains. This is part of why First Fed offers a Bank On certified checking account, credit builder loans, and more.

Stay tuned for upcoming posts as we dive into credit and debt throughout the month of March!