(3).png?lmsauth=f3c7a8090b55184c50264031594c898d4e0902f1){kind=logo}
LESSON 01 : What is Credit?
Course
Farah Javed
Gain a clear understanding of personal credit, its role in everyday life, and why maintaining good credit is essential for your financial future.
This micro-learning course, 'Personal Credit: Lesson 1 – What is Credit?', breaks down the essentials of credit in the United States across 8 concise modules. You'll explore the basics of credit—what it is, how it works, and why it matters. The course covers the various types of credit (like credit cards, auto loans, and mortgages), how credit is used for major life purchases, and the crucial role credit plays in daily financial decisions. You'll learn how credit scores are calculated, how they impact your ability to secure loans, housing, and jobs, and what habits help build and maintain strong credit. Real-world statistics and examples illustrate the importance of managing credit wisely—such as how a higher credit score can save you thousands in interest payments. Whether you're new to credit or aiming to strengthen your financial foundation, this course will equip you with the knowledge and practical skills to use credit responsibly and confidently.
Here is the course outline:
1. Welcome to Personal CreditThis opening module explains why credit is a cornerstone of modern personal finance, previews the lesson’s goals, and sets expectations for how each short module will build your knowledge step-by-step. 7 sections
|
|||||||
|
2. Borrow Today, Pay Back TomorrowDive into the fundamental idea of credit as a trust-based agreement to receive value now and repay later, including key terms such as principal, interest, and repayment schedule. 7 sections
|
|||||||
|
3. Credit in American Life: A Widespread SystemExplore credit cards, auto loans, mortgages, and student loans to see how different credit products help consumers make large purchases they couldn’t afford up front. 9 sections
|
|||||||||
|
4. Why Your Credit Score MattersUsing real statistics, this module shows how widespread credit use is in the U.S. and why responsible management is vital for everything from renting an apartment to handling emergencies. 8 sections
|
||||||||
|
5. How Credit Scores Are CalculatedBreak down the five FICO factors—payment history, amounts owed, length of history, credit mix, and new credit—to understand what drives your three-digit score. 7 sections
|
|||||||
|
6. Why This Score Is So InfluentialLearn how a few points on your credit score can change loan approvals, interest rates, and even job prospects, illustrated with side-by-side borrowing cost examples. 7 sections
|
|||||||
|
7. Building and Maintaining Good CreditGet actionable tips—on-time payments, low balances, smart budgeting—that strengthen your credit profile and protect you from common pitfalls like high-interest debt. 7 sections
|
|||||||
|
8. Key Takeaways and Next StepsThis closing module reviews the lesson’s main points, re-emphasizes the value of good credit, and provides a checklist to apply what you’ve learned in real life. 8 sections
|
||||||||
|