What is Credit?

What is credit?

• A method of investing in stocks.

• A type of savings account.

• A way to avoid paying taxes.

• The ability to borrow money or obtain goods and services with the understanding that payment will be made later.

Which of the following is an example of revolving credit?

• Mortgage

• Student loan

• Car loan

• Credit card

What is installment credit typically used for?

• Buying groceries

• Paying utility bills

• Specific purchases like cars or homes

• Daily expenses

What information is generally required when applying for credit?

• Your pet's name

• Your social media profiles

• Your favorite color

• Your income, employment history, and credit score

Why is it important to maintain a good credit score?

• To get free movie tickets

• To increase your social media followers

• To avoid paying taxes

• To get better interest rates and terms