• What is Consumer Credit?
• How do I establish Credit?
• How do I improve my existing Credit?
• How do I manage my Credit?
• Track your expenses

What is Consumer Credit?
When merchants or financial institutions let you buy something on credit, you take possession now and pay for it in the future. Credit is based on trust - the lender trusts your ability and intent to pay. Your credit history shows how well you've handled credit in the past, and suggests how well lenders can trust your ability and intent to pay in the future.
Credit allows you to purchase an expensive item - such as furniture, a car, or even a house - while promising to pay for it from future earnings. If it were not for credit, it might take you years to save enough to purchase these items with cash.

Paying cash vs. using credit
Paying cash is almost always cheaper. Even if you take money out of savings, the interest lost will probably be less than the cost of credit.However, your savings provide financial security and funds for emergencies. You should avoid dipping into savings too often.

When SHOULD I use credit?
There is no simple answer. Each time, you will have to decide whether buying an item on credit is worth the additional cost.

• Do I need this item now or can I save for it?
• Do I have savings or cash I might use instead?
• How much will the interest and other charges cost?
• Do these payments and costs fit into my budget?
• How much will this purchase increase my total debt?

Saving to pay cash vs. using credit
Saving is cheaper, but credit gets you goods and services now. Both require that you regularly set aside money from current income. Savings earn money; credit costs. Saving to purchase an item is a wise choice, if time is on your side. If the reason for the purchase is immediate, e.g, car repairs or replacing a broken appliance, then purchasing on credit gives you the ability to make that purchase right away.
If you do purchase on credit, make sure you factor the minimum monthly payment into your budget and pay more than the minimum when you are able.
Purchasing on credit may also be a wise choice if you are able to buy the item on a “Don’t pay for XX days” promotion, as long as you have the money to pay back the purchase price within the promotion period.  This gives you the ability to buy the item now, but save the money to pay for it during the promotion period. Again, make sure you factor the amount you’ll need to put aside every month into your budget, so you have the money to pay for the item when the promotion period ends.
Many people choose to buy on credit to take advantage of sale prices that will no longer be in effect by the time they have saved the money to purchase the item for cash. Be careful to only buy sale items on credit that you truly need and would have purchased for cash had you had the time to save for it. When you factor in the cost of interest you will pay, you may not have actually saved money.