Applicant #15: Rob Patershuk

Rob is a 24-year-old from Edmonton.

Rob's video application:

Rob's current situation:

I am currently working at a branch with Servus Credit Union, and hoping to bring a people-focussed method of banking to our community.

Rob's blog post:

Credit Cards: Friend or Foe?

Howdy, folks! The above question is one that many of us have asked for ages. We have all heard the horror stories of how credit cards are ruining the lives of those around us, and some of us have even had to learn about them the hard way; but why is it that regardless of whether you love or hate them, they are necessary?

I'll tell you why!

Credit cards are one of the simplest credit-building tools out there, if you know how to use them! Now is a time in our lives where we want to keep as many options open as possible, because the goals we have now may not be the same in five years. Good credit can mean an easier time buying a house, getting through university, booking hotel rooms, car rentals, online shopping...the list goes on! That said, without the appropriate knowledge of how they work, it can be far too easy to let a card with a high balance roll right over you.

So what is the best way to use a credit card if it's your first time? First off, ensure you pay your balance off each month so you don't have to pay high interest rates! Wouldn't you rather not pay a fee for using your credit card? The easiest way to manage your card without paying those fees is to only use it for essentials. Need gas? Groceries? This is money you already have to spend, so you might as well build your future while your at it! If you get a rewards' card while you're at it, that just means free money or rewards' points (travel vouchers for example) for using the card. That's right, the company is paying you!

What if you already have a credit card with a high balance, you ask? This means it's time to take a step back and look at your complete credit circumstance. If you have many cards with high balances, you may want to look into debt consolidation (a process of lowering your monthly payments to a reasonable amount, and cutting down on the long term amount of interest paid to someone other than yourself).

Consolidation isn't always possible, but there is always the balance transfer option combined with a low interest credit card. Servus' balance transfer rate for their MasterCard is currently 3.99% for 10 months! These programs are to be taken advantage of, because they can significantly help you get out of debt much faster!

Feel free to leave any questions that you might have in the comments section, and to watch my video for the Young & Free Spokesperson application! The video was mostly shot at an event hosted by a local group trying to reduce homelessness in the community. It feels great to do something for those in need, and I encourage everyone to find a way in which they can help others. This is OUR community!

Hope to see you soon!

Rob