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Using Credit Responsibly
Learn about credit scores, credit terms, and how credit cards work.Preview the first lesson free — get full access to all 6 lessons.
Essential Provider : Pamela Weston 6 Lessons · 15m in Arabic, English, Spanish
Course Description
Your borrowing and payment history is calculated into what’s called a credit score, and there are three main institutions that keep track of it. In capitalist economies, these numbers have become an integral part of life, determining whether you get loans and what interest rates you’ll pay on them. Before you get a credit card or a loan, it’s important to familiarize yourself with the key terminology to help you understand what the lender is seeking in payment and when they will expect payment. To select a card that aligns with your spending habits and financial goals, consider what is important to you when it comes to spending. If you’re just starting to build credit, you would benefit from a secured or student credit card. If you have a credit history and the ability to make consistent payments, you would benefit from a rewards card that provides an incentive when you spend.
In this KnowledgeCity course about Using Credit Responsibly, you’ll learn how credit scores are calculated, what factors impact them, and why they are an important indicator of financial health. We’ll discuss how credit scores affect borrowing capabilities, the negative impacts of having a low credit score, and strategies for improving credit scores. You’ll learn the common terms and fees associated with credit cards, loans, and other forms of credit. We’ll also discuss how to select a credit card that aligns with your financial goals, and you’ll learn about the appropriate use of credit cards and responsible spending habits.
What You'll Learn
- Define different credit-related terms, including the common terms and fees associated with credit cards, loans, and other forms of credit
- Identify the factors that determine an individual's credit score and how credit scores are calculated
- Explain how credit scores affect borrowing capabilities and the negative impacts of having a low credit score
- Compare the different types of credit cards and choose one that aligns with your financial goals
- Apply strategies for improving credit scores and using credit cards responsibly
Key Takeaways
- Your borrowing and payment history is calculated into a credit score, which is tracked by three main institutions.
- Credit scores determine whether you get loans and what interest rates you'll pay on them, making them an important indicator of financial health.
- Those just starting to build credit benefit from a secured or student credit card, while those with a credit history and the ability to make consistent payments benefit from a rewards card.
- Selecting a credit card that aligns with your spending habits and financial goals depends on what is important to you when it comes to spending.
- Understanding key terminology before getting a credit card or loan helps you know what the lender seeks in payment and when payment is expected.
Frequently Asked Questions
What will I learn in this course?
You'll learn how credit scores are calculated, what factors impact them, the common terms and fees associated with credit cards and loans, how to select a credit card that aligns with your financial goals, and how to use credit cards responsibly with good spending habits.
Who is this course for?
It suits anyone preparing to get a credit card or loan, including those just starting to build credit who would benefit from a secured or student credit card, and those with a credit history who would benefit from a rewards card.
What topics do the lessons cover?
The lessons cover an Introduction, Understanding Credit Scores, Understanding the Terms and Fees, Choosing the Right Credit Card, When To Use a Credit Card, and a Test Your Knowledge assessment.
What skills does this course help me build?
It helps build skills in Credit Card Applications, Financial Data Management, and Financial Strategy.
Does the course explain how to improve a credit score?
Yes, it discusses how credit scores affect borrowing capabilities, the negative impacts of a low credit score, and strategies for improving credit scores.
