Types of Credit

It may seem like a relatively modern concept, but humans have operated on credit, borrowing from one another and paying back debts, for millennia. Still, credit is not necessarily a simple concept.

In this course, we go over the basic principles of credit, including what it is, some of the different types of credit available today, and why it is important to have credit.

You know you need to build your credit, but as a young adult, is having a credit card really a good idea?

In this course, we look at both the benefits and risks of having a credit card as a young adult, as well as some strategies for staying responsible if you do choose to open one. We also discuss credit limits, making payments and avoiding late fees.

Understanding exactly how a credit card works is the first step to using it wisely. That's what we'll cover in this course. We'll talk about the use of chips, magnetic stripes, and mobile apps. We'll discuss various fees associated with credit cards, including processing, interest, cardholder fees, and balance transfer fees. We'll also go over how cash advances work and the differences between secured and unsecured cards.

Understanding the terms and conditions of your credit card is vital for using your card responsibly and to your advantage. In this course, we'll go over the common terms in your credit card's fine print so you can understand exactly what you're signing up for. We'll discuss variable and fixed interest rates as well as annual percentage rates, or APR. We'll also talk about grace periods and annual and credit insurance fees.

There are many different credit cards out there, so in this program we look at the criteria you can use to choose one that works for you and your financial goals. We discuss secured versus unsecured cards, credit cards versus charge cards, fine print items, and rewards programs. We also talk about having multiple credit cards and how that impacts your credit score.

If you are considering a student loan to help manage the financial costs of your education, you are certainly not alone. In 2019, almost 45 million student loan borrowers collectively owed more than $1.5 trillion in the United States.

In this course, we discuss how scholarships and grants work and how to complete the Free Application for Federal Student Aid (FAFSA). We go over the four federal loan types, who qualifies, how they are paid, and what to do if you do not qualify for federal loans. Lastly, we cover paying back your student loans.

Unless you're lucky enough to work in a city with great public transportation, you're probably going to need a car at some point in your life. Whether you're going to work or just running out to get groceries, most of us use cars on a daily basis. In this course, we'll talk about how many people pay for these cars: taking out an auto loan. We'll discuss how car loans work and go over the different types of lenders available. We'll talk about down payments, loan terms, and making payments. And finally, we'll cover what happens if you're unable to make a payment and what you should do if you're facing that situation.

Purchasing your first home is a major milestone, but it's also a complicated process. In this course, we break home loans into simple, easy-to-understand steps. We define common home loan terms and go over the various types of loans available and their requirements. We also talk about interest rates, escrow payments, and what happens if you're unable to make a mortgage payment.