 TITLE: What Is Credit? CONTENT: Why Do You Need Credit?\n-----------------------\nGood credit is necessary if you plan to borrow money for major purchases, such as a car or a home. Or maybe you want to take advantage of the convenience and purchase-protection a credit card can provide.\nA higher credit score can mean better interest rates and terms on loans and credit cards. Many card issuers also reserve their most enticing rewards cards for customers with great credit.\nLenders aren't the only ones who concern themselves with your credit reports and credit scores:\n*   Landlords may check your credit when deciding if they'll rent you an apartment or determining how large a security deposit to require.\n*   Insurance companies may use your credit scores as factors in determining your rates.\n*   Utility companies may check your credit before deciding to let you open an account or borrow equipment.\n*   Prospective employers may use information found in credit reports to make a hiring decision.\n*   Your credit report can even be used to verify your identity, and for other purposes defined by federal law.\nCredit is a tool that can help you buy things you need now and pay for them over time. Establishing and building up good credit over time is an important element of sound financial health. END