More For Your Money - University of Illinois Extension

What Is Credit?

Sooner or later, almost everyone needs to use credit. Credit lets you use goods and services while you pay for them. Credit is not increased income, a way to buy what you can’t afford, unlimited, or free.


Answer yes or no to each phrase below.

Do you think having …

a cell phone is using credit?
a loan is using credit?
an account with a power company?
a lease with a landlord?
a credit card at a local department store?