What is credit?

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What is credit?

Rounding it up

  • Credit is a contractual agreement; when you use credit to purchase a good or service, you’re making the promise that you’ll pay back later.

  • From credit cards to student loans, credit takes place in various forms. They all come with an interest rate involved.

  • A credit score is a number between 300 and 900 that indicates your trustworthiness with debt. What credit you use, and how you use it, impacts your credit score.

  • There are various ways to build your credit score, like using a credit building tool or a secured credit card.

11 min read

Barry Choi
#credit credit score#interest#loan

Barry Choi

Barry Choi is a personal finance expert based in Toronto who makes frequent media appearances. His website Money We Have is one of Canada's most trusted sources for all things related to money and travel.

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