Credit is like trust with money. It’s when someone lets you borrow money now, with the promise that you’ll pay it back later—on time. Just like you trust a friend to return something they borrow, lenders trust you to return their money. That’s what we call ‘credit.’
Think of credit like a score in a video game. The better your score, the more levels you unlock! Good credit helps you get better stuff in life: a phone plan, a car, even your own place someday.
Thanks for bringing it back! That’s what trust is all about.
Your credit score is like your financial report card. It’s a number that shows how good you are at paying back money you borrow. Just like in school, the better your habits, the higher your score. Most scores go from 300 to 850.
Think of it like a game score. You earn points by doing the right things—like paying on time, not using too much credit, and keeping accounts open. The more good habits you build, the stronger your score gets.
Some loans sound helpful but can actually make your situation worse. These are called ‘debt traps.’ They usually have super high fees or tricky rules that keep you stuck owing money.
Payday loans, rent-to-own deals, and store credit cards can seem quick and easy, but they cost way more in the long run. They’re designed to keep you borrowing again and again. That’s how people get trapped.
If it sounds too easy or too good to be true, stop and ask questions. Malik and Nova always read the fine print!
