//Borrowing Like a Boss

Knowing the basics about credit makes you anything but basic. You’ll appreciate the knowledge when you need it. Start your credit journey by learning how it works before using it. Like many things in life, if you can start on the right foot, it’ll make it easier in the future. Here are five credit tips to commit to memory:

1. Credit cards aren’t free money. They’re borrowed money you have to pay back.
2. Always have a plan for how you’ll repay what you borrow.
3. Financial institutions charge interest to borrow money. But there’s a loophole with credit cards! Pay off a credit card in full each month, and you won’t pay a penny of interest.
4. Your credit score is like a report card grade of how you’ve used credit. It impacts what interest rate you’ll receive when you borrow money. And could affect your ability to buy a car, rent an apartment, and get a job or a cell phone.
5. Build a good credit score by making timely payments and not maxing out credit cards.