Latte Money 101
Credit 101
How borrowing works, what lenders see and why the details of repayment matter.
10 lessons · about 40 minutesIn this series
Start at the top. Take it one idea at a time.
- 01What Is Credit?Credit is borrowed money or access to borrowed money that you agree to repay under specific terms.4 min
- 02Credit ReportsA credit report is a record of how you have used credit, including accounts, balances and payment history.4 min
- 03Credit ScoresA credit score is a three-digit number based on information in a credit report that helps lenders estimate credit risk.4 min
- 04Credit UtilizationCredit utilization compares revolving balances with available credit limits. It is one factor that can affect a credit score.4 min
- 05Credit CardsA credit card is revolving credit that lets you borrow up to a limit and repay the balance over time.4 min
- 06Credit Card StatementsA credit card statement summarizes the balance, transactions, payment due date, minimum payment and interest information for a billing period.4 min
- 07Minimum PaymentsThe minimum payment keeps a credit card account current, but paying only the minimum can keep the balance outstanding for a long time.4 min
- 08LoansA loan usually provides a set amount of money that is repaid over an agreed schedule with interest and possible fees.4 min
- 09Lines of CreditA line of credit is revolving borrowing that can be used, repaid and used again up to an approved limit.4 min
- 10InterestInterest is the cost of borrowing money. The rate, balance and time outstanding all affect how much interest you pay.4 min