Loan Resources: Introduction to Credit

Written by Bonnie Gringer

The typical consumer would like to buy many things that they see. Whether it is a new home, new car, new television or a host of other items, the temptation to buy is there. But, reality sets in with all of our purchases about whether we need them or not, and whether we can afford them or not. For many smaller purchases we make, we pay cash. But for many other larger purchases, we use a form of credit. So, what is credit?

Having credit is important for consumers in that it allows them the opportunity to buy items now and pay them off over time. The amount of time could be fixed as in a consumer loan or it could be a rolling line of credit that you can use, pay down and re-use. Having credit and using it properly is very important since they will have direct impact on your credit report and credit score. And, the better your credit report is, the higher your credit score will be. For consumers, the higher the credit score, the ability to borrow in the future will be better than if you have a lower score, plus generally the rate of interest you pay will be lower, saving you money!

So, it is quite important to maintain a good credit report and credit score. But, if you have had a bump in the road of your credit history, don’t panic. It will take a little time, but by paying current obligations on a timely basis, and by not obtaining a lot of credit in a short period of time, your credit will improve and your score will start to go back up.

To learn more about credit, credit reports, credit scores and how to improve your credit, we have assembled a number of helpful resources. Please feel free to review and use them as you see fit. Good luck with your future credit!