Lesson 2.2: The difference between good credit vs bad credit

Before you swipe that card or sign that contract, ask yourself: “Why am I using this credit?” Is it good credit or bad credit?

Good credit is for things that grow in value or help you make money.

Example: buying property that could increase in value over time.

Bad credit is for things that lose value fast.

Example: buying clothes or the latest cell phone (yep, it’s worth way less the minute you take it out the box).

Now, for some real talk: You will face situations where you end up using bad credit. It happens. The trick is knowing how to manage it wisely, so it doesn’t mess up your financial goals or stop you from building long-term wealth.