The aim of this module is to provide a good understanding of the concept of credit and how it can be beneficial, the impact it can have on a person’s overall financial record, and future credit requests.
The objectives of this section are:
- To explain the concept of credit
- To raise awareness of the implications of credit
- To train you to be able to manage credit
By the end of the module, you will be able to:
- understand the purpose of credit.
- understand how credit works.
- understand why good credit is important.
- use terms related to credit.
- demonstrate the ability to calculate their debt to income ratio.
- understand the importance of timely loan repayment.
In this module you will learn key facts about credit so you can make wise decisions about whether to enter into credit arrangements and how to deal with repayments. Over the past decade Credit is a word that has been used frequently in the media-You may have heard of the credit crunch- a reluctance by financial institutions to lend money. However, the idea of credit has been in existence for many years and nowadays, for some people credit is a way of life.
In this module you will learn the key terms used to describe different aspects of the credit journey, how credit works in practice and about the notion of good and bad debt.
At the end of the module you should understand why good credit is important, the benefits of making timely repayments, and how you can calculate the debt-to-credit ratio to match your personal circumstance.
The module will end with a quiz to help you to consolidate your learning.