Credit

Considering using credit? Credit can be a useful tool and credit cards can be a convenient and flexible form of payment, but they must be used responsibly to make the most of your money. Though credit cards allow you to purchase items instantly without using cash, it’s important to use your cards as carefully as you would handle your cash.

Before getting a credit card or any other line of credit, first define your financial lifestyle and search for the product which fits with your situation and spending habits. After choosing a product, especially a credit card, take time to understand its features and how it can affect your credit. 

Also known as a credit rating, a credit score reflects how reliable you are when it comes to repaying money. Lenders use it to help determine whether you qualify for a credit card, loan, mortgage or other services like a mobile phone contract. While some countries have no credit scoring system in place, many countries around the world have put one in place. Credit scoring systems are not universal, but in countries that do calculate credit, these systems share a core function. They exist to show an individual’s ability to meet various kinds of financial obligations.