Of the many definitions of credit, one of the most important is your financial trustworthiness. This is reflected by your credit report, and used by creditors to evaluate the amount, if any, they will allow you to borrow.

Your credit record is the most important factor lenders consider when you apply to borrow money, for a car, house, or to 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.