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Transition to Work

Money and Budgeting

Loans and Credit (Buy now... pay later.)

Having credit means that a bank thinks you are a good person to loan money to. Banks decide on loans based on how risky the loan will be. They want to be sure you will pay back the money, plus a fee for loaning you the money. This charge is called "interest."

There are different ways to show you are a low risk:

Credit Cards

visa mastercard american express discover
Visa Mastercard American Express Discover

A company, such as Visa or MasterCard, will issue you a small plastic card that you can use to pay stores and others who accept that card instead of cash.


Another way of building credit is to have paid off a loan. This shows you are capable of paying, because you have in the past.

Proof of Being Responsible

A final way of having good credit is to show you have a history of paying your bills on time. Keeping records of your phone bill, for example, or your rent payments if you have an apartment, can prove you are responsible with money.


How do credit cards work?
Click here to find out.

Rules about Borrowing Money

  1. Don't borrow more than you can repay
  2. Read and understand the loan
  3. Pay your debts on time
  4. Notify the loan company immediately if you cannot meet payments