Borrowing money makes sense only when you can afford it. Getting a large sum of money is often necessary to purchase a car, fund a college education, purchase a home or expand a business. But your credit history, cash management skills and other factors are used to determine if you can afford to repay that loan. So be careful to build up a history of financial responsibility. Here are some tips to keep your credit history strong, and help prove that you can afford to borrow when the time comes:
- Pay your bills on time
- Inform yourself about credit (how it works, what it costs)
- Pay attention to your credit activity (credit reports, etc.)
Inform yourself about borrowing. The importance cannot be over-stated. Peoples Bank has extensive information about credit available to help you with this learning process. So does the US government. Read the “Borrow” page on MyMoney.gov. The resources at the bottom of the page are particularly good.