The first step is understanding what credit is, how it's calculated, and why monitoring your credit is so important. Credit is the ability to borrow money under an agreement with a lender that requires you to pay back the loan later, and your credit score represents your creditworthiness as a borrower.
Using credit responsibly and maintaining good credit scores can allow you to buy things you need that you can't purchase all at once with cash, like a car or a home, and can help you build wealth over time.
It's not about having perfect credit but making sure you're taking advantage of the small things that can add up over time. Making progress with improving your credit doesn't have to be overwhelming.
There are many ways to improve your credit score beyond paying off debt. If your credit is not great at the moment, however, you don't need to scramble to come up with nonexistent funds to pay off all your debt at once.
Collection
[
|
...
]