Scratch invites you to participate in CreditSmart® Essentials , a FREE Credit Education Program offered by FreddieMac.
The free program is offered online, so you can take it anywhere!
The program offers a suite of 48 short financial education modules that provide valuable information to help you:
- Set Goals to Guide: Develop a proactive mindset to achieve personal financial goals.(4 modules).
- Earn, Then Spend Smart: Track what you earn, then spend to gain full control over your money. (7 modules).
- Be a Savvy Borrower: Build your credit, eliminate debt, and borrow smart to achieve your goals. (15 modules).
- Plan to Save: Making saving a priority so that you can better invest in what you care about mos.t (9 modules).
- Prepare and Protect: Plan for a stable financial future by protecting yourself and
your loved ones.
(13 modules).
To get the most out of the program, we recommend you complete all modules in numerical order. Each module can generally be completed in under 5 minutes.
Included in each module is a link to a glossary of terms. These terms should help you learn more about credit, and better understand each credit education module. In addition, we have included three terms below that we believe are important terms to know in order to better understand credit.
- Installment Loans (and how they work):
Installment Loans (also referred to as Installment Accounts) are a type of credit whereby a borrower signs a contract to repay a fixed amount in equal payments over a specific period of time. Examples of installment loans may include car loans, furniture loans, and oftentimes personal loans. Scratch’s Pay Over Time payment product is an example of an installment loan. - Cost of Credit:
All the costs a borrower agrees to pay related to the credit a borrower is acquiring. The cost of credit depends on the loan or credit product. Common costs that may apply are fees (a borrower may be charged a loan origination fee, prepayment penalties and late payment fees) and interest (this is the rate of interest a borrower will be charged for borrowing, expressed as a percentage). When a borrower applies for credit and is approved, the borrower should receive a contract that outlines the fees and interest rate that will apply to the credit. - Loan Payment:
A loan payment is the act of paying back money previously borrowed from a lender. Loan payment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of loan payment is a lump sum with interest at maturity.
We hope you enjoy, and find value in, the program below!
https://creditsmartlearning.freddiemac.com/consumer
If you have any questions or experience problems while taking this online course, please contact CreditSmart®.