What is Credit/Praguer U

What is Credit?

• A way to borrow money from the government

• A loan you need to pay back within a month

• The ability to borrow money and pay later

• Only for buying small items like snacks

Credit allows you to buy on the ___________ that you will pay for it later.

• condition

• idea

• card

• promise

When you use credit, who are you borrowing money from?

• Credit card company/bank

• parents

• loan officer

• checking account

How does paying your bills on time impact your credit score?

• No effect on your score

• It can hurt your credit score

• It positively impacts your score

• Only affects your spending habits

How can credit affect your ability to make large purchases, such as a car or home?

• Poor credit means easier loan approvals

• Good credit can make large purchases more affordable

• Credit does not affect large purchases

• Only cash purchases are possible for large items

What is a lender?

• Someone who borrows money

• Someone who gives loans or credit

• A person who buys items in stores

• A person who keeps your money safe

Who gives you a credit score?

• Your bank

• Your employer

• Credit reporting agencies (Equifax, Experian, TransUnion)

• Your friends and family

What determines your credit score?

• The amount of money you have in the bank

• The number of credit cards you own

• Your credit history, including payment history, debt, and credit use

• Your age and education level

If I pay my bills on time, what will happen to my credit score?

• It will go down

• It will stay the same

• It will go up

• It will disappear