Imagine that you apply for a new credit card with a high credit limit. You have other cards with high balances and need some more credit to buy stuff that you want. You believe that this card will be the magic key that enables you to buy products and pay for them later. You fill out the credit application and start dreaming about that new car stereo, entertainment set, and jet skis. But a week later a rejection letter arrives saying that you do not qualify for the high-balance credit card. Suddenly, you stop and think. Is my credit really that bad? How will I be able to get a loan to buy a new car or new home if I can't get a credit card? What exactly is credit, anyway?

This section will help answer your questions about credit – what it is and how to get it.

1. Credit Basics
2. What exactly is credit?
3. What are the basic forms of consumer credit?
4. Why does credit cost money?
5. I keep seeing references to the Truth in Lending Act. What is it?
6. How do I select the best way to finance the purchase of, for example, a car?
7. Does this mean that I should look only at the APRs when shopping for credit?
8. Are there any other points to consider when using installment credit?