Finally, when you do make a purchase you may encounter a problem when you need to pay for an item. Got cash? Great! Have enough money in the bank to cover the entire amount—go for it! However, if you need to "borrow money" such as putting it on a Credit Card Changes & Managing Credit Wisely, think twice. Understand what a credit card is and what financial obligation’s you are taking on when you make a purchase using a credit card. Every time you use a credit card you are building up your very own personal credit history. Credit Bureaus obtain this information and give you a score, a FICO score, (like a grade in school) based on how much of your credit you pay off, how long it takes you to pay it and whether you payments are received on time. When a company decides to lend you money in the future, your score will determine how much they will lend you and at what rate. The section Credit History & Credit Score (FICO) is something everyone should read, even if you are not using credit now.