Reading 1 of 2

What Is Credit?

Credit is the ability to borrow money or access goods and services now with the promise to pay later. When a lender extends credit, it is trusting you to repay — and your track record of keeping that promise becomes your credit history.

Credit shows up in everyday life more often than you might think:

Credit cards and store cards
Auto loans and personal loans
Mortgages
Even utility contracts and phone plans

Used well, credit is a tool: it lets you handle emergencies, finance large purchases, and build a reputation that unlocks better rates. Used poorly, it becomes expensive debt. The difference is habits — and that is what this course is about.