Theme 4 Lesson 11:
What Is Credit?

Decisions about credit loom large in the lives of adults as they consider buying big-ticket items- a home or a new car, for example. Young people often use credit, too-using credit cards to buy goods and services, for example, or taking out loans to pay for college expenses-and the decisions they make in these cases can have important consequences. This lesson introduces the concept of credit, with special attention paid to the advantages and disadvantages of using credit. It also describes particular types of loans including home mortgage loans, car loans, college loans, personal loans, and credit card loans.

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  • Credit
  • Interest
  • Risk

Standards in Economics and Personal Finance

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