Credit

Credit is the ability of the consumer (customer) to purchase goods or services before the payment with the trust the payment will be taken care of in the future. Credit can accumulate in many ways and some banks will add interest to the amount you owe in order to ensure they are respected for taking care of the payment before you can. Paying back your payments on time in order to maintain a high credit score and avoid excess spending is incredibly important. Credit score is a number used to foresee how likely you are to pay your payment on time or pay back a loan your bank gives. In the case that you have to switch banks, they will look for a high credit score to see if they can trust you as a customer. Overall, just make sure to know how much you can spend with credit cards and how much you can pay back with loans in order to maintain and higher your credit score. Here are some fun facts about credit!

• Credit Scores didn't exist until the 1950s.


• Some people are credit invisible!


• Closing old credit cards can hurt your credit score.

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