Credit Basics
Subject: Financial Literacy · Grade level: 9th
What credit scores measure, how APR works, and the 3 rules for using credit cards safely.
In this lesson
- What is a credit score?
- APR: the cost of borrowing
- Three rules for credit cards
Key terms
- APR
- Annual Percentage Rate — yearly cost of a loan as a percent.
- Interest
- Fee paid to the lender, calculated from the balance.
- Minimum payment
- Smallest amount due to avoid late fees — usually leaves a balance.
- Revolving balance
- Unpaid credit-card debt that keeps accruing interest.
Credit Basics lesson on BrightPath
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