Let’s start with the basics.
Credit is your ability to borrow money with the understanding you will pay it back later.
It can help you make large purchases that would be difficult to pay for with cash, like a new vehicle, a home, or a college education.
However, credit can also be dangerous if misused. It can cost you money, increase your stress, and even damage your career if you can’t get or keep a security clearance because of a poor credit reputation.
It’s important to understand how credit works, how to build your credit reputation, and how credit can be an important tool when used wisely.