Financial Literacy Portal: Understanding Credit

Understanding Credit

Buy now, pay later sounds great—but it is not the whole story. Credit often comes with costly fees and interest. Failing to pay back on time can result in a lower credit score. Understanding how credit and credit cards work can help you reduce your debt, make large purchases, and improve your credit score. Use these resources to help make credit work for you—and not the other way around.

  • VIDEO: Credit Cred
    • In this interactive course from the St. Louis Federal Reserve, learn about different types of credit and the costs associated with using credit. Consider the importance of building strong credit by borrowing wisely and paying promptly, arranging credit for making major purchases like a car or home, avoiding common credit mistakes, and monitoring your own credit. You'll also learn about credit reports, your credit score, and steps you can—and should—take to build your own credit.
  • BLOG: Understand Your Credit Cards
    • This blog post from Missouri’s UMB Bank discusses credit card vs debit card strategy.
  • Understanding Your Credit Score
    • Your credit score can impact your ability to get a loan as well as interest rates and credit limits. This information from the Consumer Financial Protection Bureau helps explain how credit scores are determined and what you can do to raise your score.


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