The Borrowing Basics module describes how credit works and helps students determine if they are ready to apply for credit. The objectives of this works are: Define credit. • Explain why credit is important. • Distinguish between secured and unsecured loans. • Identify three types of loans. • Identify the costs associated with getting a loan. • Explain why it is important to be wary of rent-to-own, pay-day loan, and refund anticipation services. • Determine if they are ready to apply for credit.