Credit knowledge refers to understanding how credit works, including the factors that influence credit scores, such as payment history, credit utilization, and length of credit history. It helps individuals make informed decisions about borrowing and managing debt, ensuring they can access loans and credit cards when needed. Having credit knowledge also involves knowing how to read a credit report and recognizing the importance of maintaining good credit. This understanding can lead to better financial opportunities, such as lower interest rates on loans and improved chances of approval for mortgages or car loans.