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Credit facts for kids

Kids Encyclopedia Facts

When somebody borrows resources from somebody else, credit is the trust that they will later pay it back. The term often is used when somebody borrows money from a bank. This is called a loan. A bank may not give somebody credit if they do not think they would pay the loan back.

Credit cards

A bank or a credit union can give somebody a credit card. This is a card somebody can use when they are buying something instead of using cash. Credit cards are given on the trust they will pay the bank or credit union.

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Credit Facts for Kids. Kiddle Encyclopedia.