- money borrowed that you promise to pay back later


What is credit? Credit is a a small loan that is promised to be payed back later to the lender.

What are the forms of credit? Different forms of credit include personal loans or credit cards for regular use.

What costs are associated with credit? The main cost of credit is interest, which is the cost of the money over a certain period of time.

What determines how much credit someone receives? Someone can only receive credit based on their creditworthiness. This is based by their credit score which is determined by credit bureaus. This can be monitored and sent to you as a credit report.

Credit Cards

Benefits of having a credit card

What is a credit card? They are cards with credit limits that must be paid back in a certain period of time. If the money is not paid within that time limit there can be penalty fees, interest for the money borrowed, and over-the-limit fees if you go over the limit.


-increases credit score if payed on time

-incentives like cash back, points, airline miles

-can carry unpaid balances month to month, have credit limits

-used wherever debit cards can be used

-some stores don't allow certain credit cards, posted on windows


-annual fees to use the credit card

-penalty and over-the-limit fees if too much was spent

-interest if large amounts are spent and not paid back over time

Stay safe while using credit cards

There are many reasons for credit card companies to harass you. Keep your phone number private, it could be spread for advertising companies to keep calling you.

Stay under your credit limit or you will see hidden fees.

Credit Card Debt

-if possible, get a loan instead of over-spending with credit cards, interest could be lower

-avoid minimum payment trap, adds up to thousands over the years

-choose cards with smallest expenses, biggest benefits

-read what you sign when you get new credit cards

-pay cash when possible, reduces chances of going into debt

-bankruptcy doesn't clear your name, it lowers your credit score even if you have less debt