Credit 101 basic: Credit lets us make a promise to pay in the future for something we really want, but can’t quite afford to pay for now.
Without doubt, credit plays a major role in our everyday lives. It helps us go to school and buy that first car — and maybe even that first really good interview suit. And it can make it possible to finally have a house of our own.
The lender’s main job is to decide if you are “credit worthy” — someone they can trust with the obligation to pay them back. Your job is to pay them back. But you also need to manage your credit in a way that doesn’t leave you drowning in debt. Or hounded by folks trying to get the money you can’t pay.
The reason I call this section Credit 101 is that the more you understand how credit works — and how you can make it work for you — the healthier you and your personal financial picture can be. And I use “healthier” on purpose, since money (or the lack of it) can be a huge stress factor.
Credit 101 basics
Handling your loans and credit
Mortgages and other types of housing loans
The value of money
We’re still growing. Feel free to ask for topics you want us to talk about.