The use of credit dates back several centuries, however it is only in the past half century that the majority of people in the United States have started to use credit in one form or another. Credit is used to purchase a house, a car, clothing, food and entertainment.

A credit card is necessary to make airline and hotel reservations, rent a vehicle and connect to utilities. Although credit is a necessary part of our lives in today’s world, it is not given to us automatically. We must first apply and be approved by the lender— once approved we must learn to use credit responsibly.

When we use credit, we create debt that must be repaid. Occasionally our debt becomes overwhelming, resulting in a bad credit history and sometimes bankruptcy. In these cases, good credit must be reestablished.