Have you ever borrowed money? At some point in life, you'll consider whether to borrow (use credit) for a major purchase. You may need to obtain credit to buy a car, finance a college education, or purchase a home. Or you may decide to take out a credit card. Before you do, it's important that you understand the basics of credit, such as the true cost of borrowing, how much you can afford to borrow based on your income, the terms and conditions of loans, and the differences between lenders. Once you have borrowed, it's essential that you make your payments on time so you can maintain creditworthiness, which will affect your eligibility borrow again in the future.