Using Credit

Credit allows people to purchase goods and services that they can use today and pay for those goods and services in the future with interest. People choose among different credit options that have different costs. Lenders approve or deny applications for loans based on an evaluation of the borrower’s past credit history and expected ability to pay in the future. Higher-risk borrowers are charged higher interest rates; lower-risk borrowers are charged lower interest rates.

Related Lessons on Virtual Economics 4.0

  • What is Credit? (Financial Fitness for Life: Theme 4, Lesson 11)
  • Making Credit Choices (Financial Fitness for Life: Theme 4, Lesson 12)
  • All About Interest (Financial Fitness for Life: Theme 4, Lesson 14)
  • Shopping for a Credit Card (Financial Fitness for Life: Theme 4, Lesson 15)
  • Applying for Credit (Financial Fitness for Life: Theme 4, Lesson 13)
  • Consumer Credit Protection (Financial Fitness for Life: Theme 4, Lesson 18)
  • Shopping for an Auto Loan (Financial Fitness for Life: Theme 4, Lesson 17)

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