Explain how to make good choices regarding the use and management of credit and debt
Understand how credit is typically used in the US
Calculate net worth
State the difference between a credit report and score and why each is important
Discussion Prompts
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5
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5
Prepare to Make Borrowing Decisions
Once you have a credit card, you need to decide when and how to use it. Watch this video and answer the questions.
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20
How to Build Good Credit in College
The previous video discussed a benefit of building good credit while you’re young. Many people get their first credit card when they’re in college, but they don’t know how to manage it well.
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15
Question 4
4.
Difference Between a Credit Report and Score
With so many Americans using credit (and with some of them late on their payments!), it’s important to understand the difference between a credit report and score. Watch and answer the questions.
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15
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10
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10
Benefits of Having Good Credit
Now that you know a bit more about managing your credit wisely, why is it so important? Go online and research the benefits of having good credit.
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20
Question 8
8.
Exit Ticket
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3
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3
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3
Question 1
1.
What are some “good” reasons for using your credit card to make a purchase?
Question 2
2.
What are some examples of “bad” reasons to use credit?
Question 3
3.
What 4 questions should you ask yourself before using credit to make a purchase?
1._______
2._______
3._______
4._______
Skim through this article and write down the top 3 things you think are most important for a college student to do to build credit responsibly while they’re in school.
1._______
2._______
3._______
Question 5
5.
What 3 types of information would be included on a credit report?
1._______
2._______
3._______
Question 6
6.
What is a credit score?
Question 7
7.
What role do the 3 credit bureaus play in your credit history and score?
According to your research, what are 4 benefits of having good credit?
1._______
2._______
3._______
4._______
Question 9
9.
Question 10
10.
Question 11
11.
What is the name given to the numerical rating that you receive based on your credit habits?
Credit card
Credit report
Credit score
Credit Hhistory
If Toni is trying to calculate her net worth, which of the following items would go on the liabilities list?
Original sale price of her car
Value of her 401(k) plan
Her Mortgage
Savings account balance
Each of the following plays a key role in determining your credit score EXCEPT:
Debt-to-credit ratio
Number of times you've opened new credit accounts or had new requests for credit