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

Credit is a financial tool that allows you to borrow money or access goods or services with the promise of paying back the debt later. It is important to manage credit well because it can have a significant impact on your financial life. Your credit history and credit score are used by lenders, landlords, and even some employers to determine your creditworthiness and trustworthiness.

Managing credit well means using credit responsibly, making payments on time, not borrowing more than you can afford to repay, and monitoring your credit report regularly for errors or signs of fraud. By managing credit well, you can establish a good credit history and credit score, which can make it easier to obtain loans, credit cards, and other financial products in the future. It can also help you secure better interest rates and terms on those products, potentially saving you money over time.