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Your Cred-O-Meter:
Build Your Credit Cred

Throughout this course, you'll be faced with scenarios that test your knowledge of credit.  If you Woman with Caranswer correctly, you'll earn points and build your credit cred, but if you don't, you'll lose points. You'll start with 500 points of credit cred (shown in the upper-right-hand corner). The rest is up to you!

At the end of the course, you'll see how your credit cred affects your options and choices regarding what you can buy and how much you can spend. For example, your credit cred determines whether a lender will be willing to lend you money. Your credit cred also determines the interest rate you'll be charged for a loan. Imagine that you want to buy a car. Say you're willing to take a car loan for 48 months, and you calculate that you can afford to pay up to $250 per month. If your credit cred is exceptional, you might be offered a loan with a 5 percent interest rate. If you have very little credit cred, you may be offered a loan at 15 percent. What difference does it make? With a 5 percent loan, you could afford a car with a price tag of $10,850. With a 15 percent loan, you would have to settle for a car priced at no more than $8,965. That's nearly a $2,000 difference!