Using Credit - What It Is

What does it mean to use credit?

• To donate money to charity

• To borrow money to buy something

• To save money for future use

• To invest money in stocks

What is interest?

• The money you save in a bank account

• The money you earn from investing

• The money you pay for using someone else's money

• The money you receive as a gift

What does APR stand for?

• Accumulated Principal Return

• Advanced Personal Responsibility

• Average Payment Required

• Annual Percentage Rate

What does a lower interest rate mean?

• You don't have to pay anything

• You pay more money

• You can borrow more money

• You pay less money

What are some everyday things people use credit cards for?

• Gas, groceries, and services

• Medical expenses, insurance, and bills

• Electronics, furniture, and appliances

• Vacations, luxury items, and entertainment

Where can you get a credit card?

• Friends and family members

• Government agencies and non-profit organizations

• Online marketplaces and social media platforms

• Banks, credit unions, and some stores

What is a secured credit card?

• A credit card that requires a deposit of money

• A credit card that offers rewards and cashback

• A credit card that has no interest rate

• A credit card that can be used internationally

Where can you get a loan?

• Banks, credit unions, and some stores

• Pawn shops and payday lenders

• Friends and family members

• Online marketplaces and social media platforms

What are some other ways to borrow money?

• Donating blood, participating in medical trials, and doing odd jobs

• Going to a payday lender, using the title to a car, and pawning things

• Investing in stocks, starting a business, and getting a scholarship

• Selling personal belongings, renting out property, and crowdfunding

Why are other ways to borrow money expensive?

• Because the charges and interest rates are high

• Because they have lower fees and penalties

• Because they provide financial education and support

• Because they offer better terms and conditions