August 8, 2017 in Smart Money

Like a school transcript, your credit follows you for life

Your credit is your reputation as a borrower.  Paired with your credit score, it tells lenders how likely you are to repay loans and helps them decide whether to approve you for credit and how much to charge you for it.

Types of credit

There are four types of credit:

When credit is a good thing

Unless you go through life on a cash-only basis, you are going to need credit. Good credit will allow you to get student loans, a mortgage, auto loans, business loans and money to pay for other things you may need. Good credit also can affect your job search because many employers check credit scores of potential employees.

Credit is a good thing when you manage it well and maintain a high credit score. Among the benefits of maintaining a high credit score:

How to keep your credit healthy

Follow these tips to obtain — and maintain — a healthy credit score. The better your credit, the easier it is to get more.

Use Bankrate’s calculator to determine how much house you can afford to buy.