Knowing how credit and loans work is often a part of being smart with money. Loans are usually used for bigger goals like getting a house, a car, or paying for school. Credit lets you borrow money for small or big purchases. When used properly, both choices can be useful. This can save you money in the long run. But if you have bad credit, you might have to pay more or even be turned down.  Personal, student, car, and mortgage loans are just a few of the different types of loans. Before you borrow, comparing lenders, understanding repayment terms, and only taking what you can afford are good things to do. Credit and loans can help you get from bad to good with your money if you use them correctly.