By: Marlo Townsend

What is Credit? What are the forms of credit? What costs are associated with credit? What determines if someone gets credit and how much they get?

To believe that someone will do something and pay it back later is credit. Their are many forms of credit, for example, Credit Cards, and student loans. Those are the most popular forms. Some costs associated with credit would be schooling loans, house loans, and car loans. Something that determines whether someone gets credit and how much is their credit score. This shows the credit bureau their abilities to pay back a loan.


  • Credit- The ability of a customer to obtain goods and services before payment

  • Credit Bureau- a company that collects info relating to the credit ratings of individuals and making it available to credit card companies

  • Credit Report- a record of ones past borrowing and repaying

  • Creditworthiness- someones record of being responsible when paying back loans.

  • Interest (APR)- getting money from having money in the bank or from having a credit card

  • Lender- someone that gives you money to pay for something.

  • Credit Cards- a card that holds your credit amount to pay for things you may need that you don't have the money for

  • Personal Loans- a loan for you to go further in life.

Important Vocab

Capital-value of what you own

Character-sense on financial responsibility in a person

Capacity- financial ability to pay back a loan

Credit Cards: What you need to know

A credit card is a card a bank company gives to you containing your credit so that you can use it. You can use a credit card mostly anywhere. You just need to be careful with it. Some benefits is that you are able to pay for things you don't have the money for at the moment and you get interest for using the card. But if you do not have enough to pay back the loans, it could get bad with fees.

Smart Consumers: Don't Fall Into the Credit Card Trap

When using credit cards, use them responsibly and DON'T overspend. Pay back all the loans and fees within the due date. Use them on needs and not on wants, which means not because you want something but because you need it. With small purchases don't use a credit card.