Section 1:The Basics of Credit

What is Credit? Credit is money that is not free and that you must pay back.

What are the forms of credit? Home loan, Student loan, personal loans. Credit Cards, Low limit Credit Cards, Student credit card.
What costs are associated with credit

What determines if someone gets credit and how much they get? Character - Trustworthy. Capacity - capability to pay back the loan. Creditworthiness - do you pay your apartment. Collateral - What do you have of value.

Section 2: Vocabulary Watch

● Credit Report -,,
● Creditworthiness - An assessment of the likelihood that a borrower will default on their debt obligations.
● Interest (APR) - If you miss the payment they can raise the rate.

Section 3: Credit Cards: What You Need to Know

A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.

A credit lets you borrow a small amount of money from the bank which you will have to pay back in the future most likely with some interest.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

  • Sign your credit card as soon as you get it.
  • Always use a secure browser
  • pay more then the minimum owed.
  • Always pay on the time