What is credit, and why is it important to manage it?

Credit refers to the ability to borrow money or obtain goods or services with the promise of paying for them later. Managing credit effectively is important because it can impact your financial health and ability to access future credit. A good credit history and credit score can make it easier to obtain loans and credit cards with favorable terms and lower interest rates. On the other hand, poor credit management can lead to high levels of debt, missed payments, and a damaged credit score, which can make it difficult to obtain credit in the future.