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Introduction to Credit

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When used wisely, credit is your friend. Learn about credit risks and credit reports and why credit must be used responsibly.

What you will learn

  • What Is Credit?
  • Credit Cards: How Do They Work and How Should You Use Them?
  • Choosing a Credit Card
  • Your Credit Score: What Is It and Why Is It Important?
  • The Effects of Bad Credit
  • Loan Application and Credit Score Activity
  • Tips for Improving Your Credit and Credit Score
  • How Collection Agencies Work

What do you know?

Introduction to Credit

Credit is an important part of the American economy. Without it, our economy would come to a screeching halt. Credit has been around as long as there has been money. It helps the flow of commerce. Even wealthy people use credit.

However, credit can be abused by both the creditor and borrower. For this reason the government has passed laws regulating fair credit practices.

When used wisely, credit is your friend; used unwisely, it can become your worst nightmare.