Educational Resources - Borrowing Basics

Borrowing Basics | Types of Credit | Cost of Credit | Applying For Credit | Manage Your Credit | Glossary

Borrowing Basics

What is Credit anyway? Credit is money you borrow. It is usually referred to as a loan. You make a promise to pay back the money you borrowed plus some extra. The extra amount is part of the cost of borrowing the money.

Credit is important because it can be useful in times of emergency and is sometimes more convenient than cash. In addition, large purchases such as a car or a house generally need to be made using credit as most people do not have that much cash available.

While taking on debt never sounds like a good idea, it can actually be smart when it helps to establish credit history and helpful when you need to purchase something immediately but don't have cash available to make the purchase. By studying this course, you can increase your understanding of:

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