Credit is the provision of resources (such as granting a loan) by one party to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources (or material(s) of equal value) at a later date. The first party is called a creditor, also known as a lender, while the second party is called a debtor, also known as a borrower.

Of the many definitions of "credit," one of the most important is "financial trustworthiness". Your credit report is the most important factor lenders consider when you apply to borrow money - for a car or house - or open a credit card account. Many lenders offer better terms and lower interest rates to consumers with good credit ratings. Building a good credit record is an important step in reaching financial independence.

You should check your credit report at a minimum once a year to ensure there are no errors, you are not a victim of credit fraud.

There are three Consumer reporting agencies that report your information, they are:

Equifax
800 685-1111
Get Your Equifax Credit Report Now!
P.O. Box 740241
Atlanta, Ga.
30374-0241

Experion
888 322 5583
http://www.experian.com
P.O. Box 2002
Allen, Texas 75013

Transunion
800 888-4213
http://www.transunion.com
P.O. Box 1000
Chester, Pa. 19022