Credit Basics

Subject: Financial Literacy  ·  Grade level: 9th

Credit scores, what builds (and destroys) them, APR, and using credit cards safely. Credit is a tool — powerful when used right, devastating when misused. Lea

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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