What’s the first thing you think of when you hear the word “credit”? Let me guess…credit cards, right? You hear the word all the time, but did you ever ask what the word credit really means?
To put it simply, credit is about borrowing money — you know, like borrowing money to buy something now if you don’t have the cash yourself. Think loans. Think credit cards.
It sounds great, doesn’t it? With credit, you don’t need to have money in your budget — you can just borrow it, right?
Sorry, wrong — I mean, halfway wrong. As you’ll see, yes, credit gives you purchasing power, but only if you respect it. If you do, you’ll have what they call good credit. But if you go out of control with your borrowing, you’ll have bad credit — which can seriously affect your future.
Let’s check out the difference between good and bad credit — and why you should care.
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