Credit Matters
Credit is an important financial tool. It lets you pay for items you could not afford with cash, such as a college education, a new vehicle, apartment furniture or a home.
However, credit can get out of hand if you are not careful. Poor spending decisions now can damage your credit reputation for years ahead.
Working to build good credit takes time, but it is worth the effort.
This article includes information and tips to help you:
- Get started with credit.
- Use credit to improve your financial reputation.
- Monitor and protect your credit report and score.
When you learn to use credit wisely, you can avoid credit problems and build a strong financial future.
| Good Credit Can Help You: |
Poor Credit Can Keep You From: |
- Qualify for certain jobs.
- Obtain affordable insurance for your vehicle or home.
- Obtain lower-interest loans.
- Receive job-related security clearances.
- Rent an apartment or home.
- Purchase a vehicle or home.
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- Qualifying for certain jobs.
- Qualifying for insurance or obtaining affordable insurance.
- Securing a loan for large purchases.
- Getting an approved background check by your employer or for the military.
- Having the apartment or home of your choice.
- Qualifying for an auto loan or home mortgage.
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Keep In Mind
Credit is borrowing.
When credit is used, there is a creditor (the individual, bank, store or company that is owed money) and a debtor (the individual who has to pay it).
Your credit reputation generally determines how much money you are able to borrow and how much it costs to do so.
More Than Credit
The way you handle money affects more than your credit reputation. Your spending and saving choices can increase financial opportunities or cause financial strain that may affect personal relationships, physical health, and school or job performance.
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Basic Money Management
Basic Money Management