What is credit and why is it important
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Credit is having a quality of worth or trust and being entitled to confidence, having approval, honorability and good character. Credit is the means by which we are able to obtain an immediate benefit of goods or services upon the promise of payment at a future date. Credit is money that is a unit of exchange, is kept in relatively short supply, and although we may have enough for small purchases, it is common to borrow or obtain credit for those items that we require, but cannot immediately afford. As we receive credit we are expected to give credit, we do this by allowing our employers a week or a month's credit in which to pay for our services.
If we pay cash for all our purchases we will never build up a credit rating. To establish a credit rating we must purchase goods and charge them to an account. Credit is regularly built by the use of higher purchase facilities such as credit card companies, bank checking accounts or by simply paying our bills on a timely basis.
It is important to establish good credit because having a good credit history is an important part of maintaining a happy, healthy, and financially fit life. Having the ability to borrow money when it's needed is a well-known benefit of having good credit. Credit affects us in many ways and helps us live the kind of lifestyle that we want to live...