Lesson 1: What is Credit?
What credit is and how it works.
A short introduction to what credit is: borrowing money or buying on terms and repaying later.
Credit Cards
Start with four short foundational lessons: what credit is, how credit cards work, interest and fees, and credit cards vs debit cards. Then cover credit scores and history, responsible use, buy now pay later and other credit, and avoiding the debt trap.
Module overview
- 8 lessons total
- Foundation Lessons 1 to 4: Short and essential (3 to 5 min each)
- Lessons 5 to 8: Credit scores and history, responsible use, BNPL and other credit, avoiding the debt trap
Phase 1: Foundation
Lesson 2: How Credit Cards Work
Credit limit, balance and repayments.
Credit limit, balance, minimum repayments and statement cycles. How spending and repaying affect what you owe.
Lesson 3: Interest and Fees
What you pay when you use a card.
How interest is charged on unpaid balances, common fees (annual, late, overseas) and how they add up.
Lesson 4: Credit Cards vs Debit Cards
How they differ and when to use each.
The difference between paying with credit and paying with your own money from a debit card.
Phase 2: Going further
Lesson 5: Credit Scores and Credit History
How your credit use is recorded.
What a credit score and credit history are, and how your card use affects them.
Lesson 6: Responsible Credit Use
Pay in full and avoid the minimum trap.
Best habits: paying in full each month, avoiding minimum-only repayments and staying within your budget.
Lesson 7: Buy Now Pay Later and Other Credit
BNPL and other forms of credit.
Buy now pay later, store credit and other ways to borrow—how they work and what to watch for.
Lesson 8: Avoiding the Debt Trap
Steps to stay clear of costly debt.
How to avoid falling into credit card debt and practical steps if you need to pay it down.
Applied Case Study
After completing the lessons, do the Applied Case Study to bring together everything you have learned. You will read a scenario about someone using their first credit card and answer 8 questions that use concepts from Lessons 1–8. Your answers are saved in your browser and will be graded by your teacher using a rubric.
Go to Applied Case Study →