Credit is such a common part of our lives; you might not realize how often you use it. Do you phone friends or family long-distance? Do you heat or cool your home? Have you bought a car? Anytime you buy something or receive a service without paying cash for it immediately, you're putting credit to work for you.

Credit can help you get something when you need it. When you take out a consumer credit loan, you promise to pay it in full, usually with interest, at set dates in the future. Interest is a charge added to the original amount of the loan to pay the lender for the use of the money. When you use credit to buy something, you're promising to make your payments on time.