When you borrow money to pay for something or use a card to charge a purchase, you are using credit.

By using credit, you are able to pay for things you want or need when you don't have the cash to cover the purchase or don't want to pay the full amount at once.

You will need to repay or pay off the amount of money you borrowed, plus a fee for having used it.

Credit Cards and loans are the types of credit most often used.

Loans allow you to borrow a lump sum of money and have a long history.

Credit Cards give you revolving access to a fixed sum of money have become very popular and are a way of life for a majority of people. Revolving access means that as soon as you repay an amount you have used, you can use it again.