Understanding Credit Basics: Know the Score!

With the recent collapse of the global economy, it has become painfully obvious that credit—which is simply money given in exchange for the promise of future payment—is a fiscal tool that many Americans don't quite understand and therefore do not use responsibly. Understanding Credit Basics is an excellent primer that introduces and explains important vocabulary terms and phrases (such as “finance charge,” “down payment,” and “principle”), while also illustrating concepts such as APR (annual percentage rate) and compound interest with real-world examples—such as car loans, financial aid, and mortgages—to reveal the true dollar cost of using credit. Other topics covered include credit histories and FICO scores (in addition to offering tips on how to establish and maintain a good rating, the program features advice on overcoming a poor record), as well as the danger of identity theft. Bundled with a solid curriculum, this practical and informative guide is highly recommended. Aud: H, C, P. (E. Gieschen)