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4.1 Basics of Managing Credit (Due 11/29/22)

Last updated 12 months ago
11 questions

In this lesson, you will learn to:

  • 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

Required
5

What are some “good” reasons for using your credit card to make a purchase?

Required
5

What are some examples of “bad” reasons to use credit?

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.


Required
20
What 4 questions should you ask yourself before using credit to make a purchase?
1._______
2._______
3._______
4._______

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.
Required
15
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._______

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.
Required
15
What 3 types of information would be included on a credit report?

1._______
2._______
3._______
Required
10

What is a credit score?

Required
10

What role do the 3 credit bureaus play in your credit history and score?

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.
Required
20
According to your research, what are 4 benefits of having good credit?

1._______
2._______
3._______
4._______

Exit Ticket

Required
3

What is the name given to the numerical rating that you receive based on your credit habits?

Required
3

If Toni is trying to calculate her net worth, which of the following items would go on the liabilities list?

Required
3

Each of the following plays a key role in determining your credit score EXCEPT: