Independent work credit

Credit Benefits

• Access to cash in an emergency
• The ability to use it now
• Safety and convenience
• Earn bonus points or miles

Comparing Credit Cards

What to look for:

Do I Qualify

APR

Loan Term

Fees

Prepayment Penalties

Maximum Loan Amount

Minimum Payment Amount

Type of Credit	Institution	Features
Credit Card	Banks, credit unions, stores, and gas stations	Some types of credit cards can be used just about anywhere, some only at a specific place. No payoff deadline Monthly minimum payments vary, based on the balance Usually has the highest rate of these four types of credit
Installment Loan	Banks, credit unions, auto dealers, and other financial institutions	Typically used for large purchases such as a car or an appliance Loan term can vary from a few months to many years Monthly payment amount are often set for the life of the loan Usually has a lower interest rate than a credit card

Type of Credit	Institution	Features
Student Loan	Banks, credit unions, stores, and the federal government	Used for tuition and other college expenses Depending on your income level, some loan programs let you delay making payments until you graduate Loan term is usually up to 10 years, depending on the amount borrowed Monthly payment amounts are usually set annually Usually has lower interest rate than an installment loan May provide an income tax break on interest paid to the lender
Mortgage	Banks and credit unions	Used specifically for a loan to purchase a home Usually repaid over 15-30 years Monthly payments may be set for the life of the loan, or changed more frequently, depending on the type of interest rate Usually has a lower interest rate than an installment loan May provide an income tax break on interest paid to the lender