What is Credit?
Credit is borrowing money to buy things. Credit means buying things now with a promise to pay in the future. People use credit to buy things they might not have enough money for right now.
You must pay back the money you borrowed or spent using credit. You should think about how you will pay the money back before you use credit. It is important to pay credit back as quickly as you can.
Types of Credit:
- A credit card is a card you can use to buy something now and pay for later.
- A loan is money you borrow to pay for a large purchase like a home or car.
Tools: Learning About Credit
Use these tools to learn more about credit.