A Guide to Understanding
and Managing Credit
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Welcome to the online version of the Borrow Smart guide. If you don't have one already, this guide is available at your local Community Bank banking center in a printed version. To get one, or if you have questions on the topics presented on this site, ask an associate the next time you’re in a banking center.
More than ever, credit is widely available and used. Unfortunately, as the use of credit has increased, so too has the number of people knee deep in debt. Indicative of this is the amount of credit card debt owed by American families which, even adjusted for inflation, has more than tripled since 1989.1
Not all credit is created equal—nor is there anything wrong with using credit responsibly. We’re going to look at different types of credit—secured and unsecured, installment and revolving—examine how each type works, and show you how to use each type of credit to your advantage. We’ll also examine how to avoid common pitfalls and look at why you might want to think twice before using payday loans and rent-to-own plans.
1. Fair Isaac Corporation
