Your guide shares a story about borrowing money.
Take a minute to look at borrowing money from two points of view — the lender and the borrower.
When my friend’s car broke down, I loaned him three hundred bucks. Then my friend, the car, and the money all drove away — never to be seen again! A total disaster … but it did teach me what lending’s all about: trust. Lenders are only going to loan you money if they trust you to pay them back.
We’ll show you how to earn the trust of banks and credit card companies so you can establish and build good credit: the flexibility to borrow money when you need it.
Having the ability to borrow money when you need it gives you flexibility. If you understand how credit works, use it wisely and avoid having too much debt, credit can help you to reach your goals.
Note: A little basic vocabulary – those who lend you money are called lenders or creditors. The money you owe is called debt.
Click the Next button to learn about credit basics.