Life Without Credit: Samantha Turns the Corner

By Dawn Handschuh, Personal Finance Writer   

When we left Samantha, she'd lost a plum job ¾ an associate veterinarian position practicing with Cash Only, Arkansas's most respected veterinarian.  But even the credentials of a newly minted Cornell grad weren't enough to sway a small business owner/vet who felt uneasy entrusting a young woman with no discernible credit history ¾ and no record of fiscal responsibility ¾ with a practice he built from scratch 45 years ago.  

Samantha accepted a backup job offer with Dr. Vexton in Plastic City. It wasn't her first choice, but how could she know that the opportunities she'd find there extended well beyond veterinary medicine?

Samantha learned that Dr. Vexton's approach to running a veterinarian business varied greatly from Dr. Andersen's. It took Dr. Andersen a lifetime to build his practice because he failed to leverage credit. In contrast, Dr. Vexton made liberal use of small business loans to finance business investments, like when he purchased a $40,000 laser for spay-and-neuters.

Dr. Vexton's business thrived. Samantha was the fourth veterinarian to join his state-of-the-art facility featuring not only laser-assisted surgery but ultrasound, dentistry and orthopedic surgery, too.

Samantha absorbed everything like a sponge. Soon she began applying what she learned to her personal finances. She got a credit card but used it sparingly.  She did indulge by charging the purchase of a jet-black, purebred Newfoundland puppy with enormous feet.  Soon, the puppy managed Bark Duty at Samantha's office. Still, she paid off the debt quickly to avoid carrying a balance. 

Samantha's next credit foray was an auto loan she used to purchase a new car, replacing the lemon. Samantha made every payment on time and even added a bit extra toward principal each month.

Six months later, Samantha was thrilled to move out of mom and dad's house and into her own place. She fell in love with the Hydrangea Way apartment with its private patio and location near a park, ideal for exercising Rufus. Her landlord ran a credit check on her and decided that a young woman who earned a good income and paid her bills on time was the kind of "risk" he liked to take.

Thanks to credit, Samantha achieved her earliest goals and was well on her way to a prosperous and productive life.