Consumer | VL #10 INFOGRAPHIC Credit for Young People

SECTION 1: Credit is Useful

Which is NOT a primary benefit of using credit?

• Convenience

• Emergency preparation

• Earning interest

• Future planning

What percentage of people prefer using credit over cash or debit?

• 20%

• 40%

• 60%

• 70%

Good credit can impact your ability to obtain which of the following?

• Health insurance

• Mortgages

• Utility services
• Grocery store discounts

SECTION 2: How Young People Get Credit

Which is NOT a way in which young people can build credit?

• Avoiding all credit use

• Be added as an authorized user on a parent's credit card

• Payoff interest on unsubsidized student loans while in school

• Get a secured credit card

How does a secured credit card work?

• It requires no deposit & offers unlimited credit.

• It requires a cash deposit that acts as collateral & sets your credit limit.

• It is linked to a checking account for direct withdrawals.

• It works like a debit card with no credit limit.

Why might a co-signer on a credit card application be helpful for a young person?

• A co-signer is required to pay all the bills.
• A co-signer can improve approval chances & help build credit history.

• A co-signer can prevent the young person from using the card.
• A co-signer can increase interest rates on the card.