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Loans and Credit

Being Responsible

Another way of building credit is to have paid off a loan. This shows you are capable of paying, because you have in the past.

A final way of having good credit is to show you have a history of paying your bills on time. Keeping records of your phone bill, for example, or your rent payments if you have an apartment, can prove you are responsible with money.

Rules about Borrowing Money

  • Don’t borrow more than you can repay
  • Read and understand the loan
  • Pay your debts on time
  • Notify the loan company immediately if you cannot meet payments
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