At this point, you have likely already taken advantage of some form of credit or loans options. Maybe you have taken out a student loan, or perhaps you have a credit card for emergencies or to spread out large and small expenses. Typically, credit comes in two forms: installment loans and revolving credit.

Installment Loans: Loans taken out for a specific purpose that must be payed back in regularly scheduled payments. Examples of this include auto loans, student loans, mortgages, and personal loans.

Revolving Credit: A line of credit that allows the account holder to repeatedly borrow money, just so long as they do not exceed their credit limit and regularly pay a minimum balance on their account. Examples of this include traditional credit cards (Mastercard or Visa) or store credit cards.

Both forms of credit can be useful for individuals because they are able to manage large expenses while also establishing a credit history, which can improve your credit score if you make your payments on time. A high credit score, also known as a FICO score, gives lenders a picture of your credit worthiness and level of risk. This can negatively or positively impact your ability to receive loans and credit in the future.

There are three credit reporting agencies, also known as credit bureaus, that collect information on your credit and financial history: TransUnion, Experian and Equifax. Credit reports are a summary of your personal credit history. You are entitled to free annual credit report from each of the three credit reporting agencies. To access your FICO credit score, you may have to pay additional fees.

• Credit Reports 201

  Video developed by 360degrees of Financial Literacy. Video Description: A credit report is like a personnel file for your finances. Michael Eisenberg, CPA/PFS, explains why you need to know what’s in it and make sure it’s accurate.

• AnnualCreditReport.com

  Authorized by Federal law, AnnualCreditReport.com is the only source for free credit reports.

• Free Credit Reports (FTC)

  Learn about credit reports and how to access your free credit reports from the three national credit bureaus.

• Credit Reports and Scores (USA.gov)

  Information from USA.gov. Learn how to access your credit report, make corrections, and freeze credit accounts.

Decision Guides

• Credit Cards 201

  Video developed by 360degrees of Financial Literacy. Video Description: Credit cards can make your financial life easier and more convenient. Michael Eisenberg, CPA/PFS, talks though how to choose one that’s right for you.

• Credit Cards (cfpb)

  Guide by the Consumer Financial Protection Bureau. Learn key terms, common issues, your rights, and ways to take action.

• Credit, Loans, and Debt (Consumer.gov)

  Resource from the Federal Trade Commission's Consumer.gov guide. Includes information on Using credit, payday loans and cash advances, car titles loans, and managing debt.

Credit Tools

• Credit Calculators (360Degrees)

  Calculators from 360Degrees of Financial Literacy. Includes calculators to determine how much you owe, how to pay it off, and credit card optimization.

• Credit and Debt (SaveAndInvest.org)

  Provides tools to help control credit, dig yourself out of debt, improve your credit score, choose a credit card, and more.

• CFPB Credit Card Agreements & Surveys

  Consumer Financial Protection Bureau database of credit card agreements.

• Credit & Debt Information from USA.gov

  Find advice and help with credit cards and credit scores, as well as what to do when faced with debt problems.

• FTC Credit, Loans, and Debt Resources

  Advice on using credit; navigating payday loans, cash advances, and car title loans; and debt management from the Federal Trade Commission.

• Smart About Money's Credit & Debt Basics Course

  Self-paced introductory course to credit and debt from the National Endowment of Financial Education (NEFE).