Based on your credit history, could you:

• Get a credit card in your name?

• Get a loan for a car on only your signature?

• Get a $10,000 loan to start a home business with no collateral?

The wise use of credit is a major component in the management of money. By understanding how to compare credit rates, manage debt, and how your rights are protected by law, you will be able to become credit-worthy and increase your financial security.

Being able to "buy now and pay later" is a great convenience. Unfortunately, too many people don't understand how to make credit work for rather than against them. They may not have learned that credit is not . . .

. . . free. Credit is a service, and you must pay for it if you use it. If you can't pay for an item in full, you must pay interest on the remaining balance. Over time, the interest due could equal the original price of the item. The interest you pay is the cost of credit.

. . . extra cash or increased income. Using credit simply allows you to spend tomorrow's income today, leaving you less income for your regular expenses tomorrow.

. . . a way to buy what you cannot afford. The costs of buying on credit will make an item less affordable and may actually lower your standard of living.

. . . unlimited. The amount of credit a store gives you depends on your history of paying bills promptly. A poor credit history means you get little credit and will have to pay more for it.

. . . a game. But, like a game, you must play by the rules, or you lose. When you sign a credit agreement or contract, you make a legal promise to pay for an item in full. If you don't live up to the terms of the agreement, there can be serious consequences.

. . . the lender's responsibility. You may be offered more credit than you can afford to repay. Only you can decide when to use credit and how much you can afford.