Lesson 2: Understanding the impact of credit cards

Special points, airline miles, loyalty rewards, and shiny, platinum status – credit cards use every trick in the book to entice us. Sometimes credit cards make sense. Other times, they destroy our budgets and sabotage our future money goals. Learn how credit cards function so you can make them work for you – and not against you.

How Do Credit Cards Work?
What Is APR?
What Is Compound Interest?
Why You Will Always Be Approved for More Than You Can Afford
Getting Comfortable with Monthly Payments
Why Available Credit Is Not Actually Available
Benefits and Drawbacks
Points, Miles, and Other Perks
Test Your Knowledge
Next Steps