What is Credit?

Credit is your reputation as a borrower. It's made of information about your past behavior, and it tries to predict your future behavior. To have the best credit, you have to understand what credit is, where it is, and how the information is used.

There are few easy shortcuts to getting good credit. You develop good credit by consistently using a variety of loans responsibly. Of course, sometimes life will send you a curveball and your credit can suffer. That's why you have to build strong credit in the first place and know exactly what credit is so you can pick up the pieces more easily.

Further reading:

• What is Credit?
• How Credit Scores Work