Managing Credit

Navigating the world of credit is an essential skill. There are numerous decisions to be mindful of, including when to use credit, how to manage loans and debt, and how your credit score can affect future purchases. When it comes to credit, trust and playing the long game are key. 

If you’re just opening your first credit account, you might not be thinking about buying a car or a house.. But it’s important to remember that your credit history will follow you around, so it’s best to get ahead and make smart financial choices from the start. If your initial credit terms seem hard to manage, remember that the only way to improve your credit conditions is to show you’re worth the risk, so continue to use credit and pay it back responsibly.

Unlike with your credit card, a mortgage is another important example of why it’s important to build good credit. This is because the interest rates and required down payment you need for a mortgage both go down if you have good credit – which can save tens of thousands of dollars over the course of the loan. In the case of a mortgage, your house becomes collateral in the loan, and so making smart crediting decisions is essential to keeping a roof over your head. 

When jumping into the world of credit, it can be daunting to research your bank, credit card, and overall terms and conditions. To help simplify the process, in this unit, we will discuss the difference between good and bad credit, how to navigate interest rates, and explain why it’s important to practice smart credit management.