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5/18 FA 8.3 Your Credit History

Last updated over 2 years ago
22 questions
Note from the author:

OBJECTIVES & STANDARDS

Math Objectives
  • Represent data using a dot plot
  • Use relevant math vocabulary to describe dot plots, including median, mode, range, and outliers.
Common Core Math Standards
  • Link to all CCSS Math
  • CCSS.HSS.ID.A.1
Personal Finance Objectives
  • Describe the purpose and components of a credit report
  • Understand why interested parties may want to check your credit score
  • Explain key components of the Fair Credit Reporting Act and how it impacts lenders and borrowers
National Standards for Personal Financial Education
Managing Credit
  • 7a: Identify the primary organizations that maintain and provide consumer credit reports
  • 7b: Assess the value to a potential lender of the information contained in a credit report
  • 7c: Explain how a person can get a free copy of their credit report and why this is advisable
  • 7d: Outline the process of disputing inaccurate credit report information

OBJECTIVES & STANDARDS

Math Objectives
  • Represent data using a dot plot
  • Use relevant math vocabulary to describe dot plots, including median, mode, range, and outliers.
Common Core Math Standards
  • Link to all CCSS Math
  • CCSS.HSS.ID.A.1
Personal Finance Objectives
  • Describe the purpose and components of a credit report
  • Understand why interested parties may want to check your credit score
  • Explain key components of the Fair Credit Reporting Act and how it impacts lenders and borrowers
National Standards for Personal Financial Education
Managing Credit
  • 7a: Identify the primary organizations that maintain and provide consumer credit reports
  • 7b: Assess the value to a potential lender of the information contained in a credit report
  • 7c: Explain how a person can get a free copy of their credit report and why this is advisable
  • 7d: Outline the process of disputing inaccurate credit report information
Intro

DISCUSSION PROMPT: Imagine You’re The Lender

What goes into the decision to lend someone money? Discuss the following question with your classmates or with a partner.
5

If someone you did NOT know well wanted to borrow money from you, what would you want to learn about them before deciding? Why?

Learn It

EDPUZZLE: Understanding Your Credit Report

Lenders use your credit report to decide whether to lend you money. A credit report includes your personal information and credit history. Watch this video to learn more about what goes into your credit report. Then, answer the questions either in EdPuzzle or below.
1

Why do lenders look at credit reports?

A. To determine the size of your household

B. To provide them with details about your savings account

C. To decide whether you are a qualified or risky candidate for credit

D. To edit your credit score

1

The following options are all included in your credit report trade lines, EXCEPT...
A. Amount of money in your checking account
B. Payment history
C. Current balances on your loans
D. When you opened your credit accounts

2

Why should you review your credit report regularly? Choose two correct answers.
A. To monitor how different factors are impacting your FICO score
B. To increase your credit views, which automatically increases your credit score
C. To check your credit report for accuracy
D. To open additional loans and lines of credit

RESEARCH: Fair Credit Reporting Act Web Quest
Use the internet to find credible answers to questions on the Fair Credit Reporting Act (FCRA). For each answer, be sure to cite your source with the name of the website you used.
Here are a few sources to get you started:
  • A Summary of Your Rights under FCRA, Experian
  • Fair Credit Reporting Act: Know Your Rights, Nerdwallet
  • Fair Credit Reporting Act, Debt.org
  • What You Should Know About the FCRA, About Money
1

There are three main credit reporting bureaus -- Equifax, Experian, and TransUnion. How frequently can you request and receive a free credit report from each bureau?

1

Give 5 examples of people or organizations who can request to see YOUR credit report.

1

What is the maximum amount of time a negative item (late payment, missed payment, default, bankruptcy) can stay on your credit report?

1

Suppose you apply for an apartment, and the landlord informs you that, based on your credit report, she is not going to rent you the apartment. According to FCRA, what information must she legally provide you about that decision?

1

Suppose you’ve already received your free credit reports this year. Give 3 situations in which the credit bureaus would have to provide you an additional free report.

1

If you review your credit report and find an error, and you’re able to prove it is, indeed, an error, how long does the credit bureau have to remove the error?

1

Explain why someone might want to put a “red flag” on their own credit report.

1

The FCRA applies only to the 3 main credit reporting bureaus -- Equifax, Experian, and TransUnion.

1

Under FCRA, each credit bureau must also provide your credit score, free of charge, if you request it.

1

FCRA allows you to opt-out of receiving credit card promotions based on your credit history.

1

Equifax, Experian, and TransUnion are legally obligated to provide identical information.

1
_______ The website you can get your free credit report.

ARTICLE: Credit Monitoring Services: Are They Worth the Cost?

In addition to checking your own credit report, you can use credit monitoring services to alert you if anything changes. These services can help you respond more quickly to identity theft or fraud. Read the article and answer the questions.
3

What 3 things can you do to monitor your credit without paying for a credit monitoring service?

1

Why might someone want to pay for a credit monitoring service?

Math Connection: Box Plots (Desmos)

ACTIVITY: MOVE: Credit Dot Plots

A dot plot is another type of graph that you can use to represent a data set. In a dot plot, each data point is represented by a single dot. This layout makes it easy to see how data is spread out; however, it is usually only used for small data sets.
20

Desmos Link: https://student.desmos.com/activitybuilder/student-greeting/64662d3b784ea48bea6a6a6c
(Grade will be updated to reflect completion of Desmos)

Credit Persona Card: https://docs.google.com/document/d/12kWtZN-OYZUjLc8acU6YxJgt3RtHtsZ14qWR_pH60gw/edit
What is the equation for credit utilization? (Screen 11)

Exit Ticket
1

All of the following may be included on your credit report, EXCEPT…
A. On-time credit card payments
B. Unpaid bills in collections
C. Student loans
D. Bank account balance

1

What is a benefit of using a credit monitoring service?
A. It reduces the likelihood of your personal data being exposed
B. It automatically improves your credit score
C. It notifies you quickly if someone tries to open a credit account in your name
D. It disputes inaccurate credit information on your behalf

1

Blanca requests a copy of her credit report and discovers an error: her listed address is incorrect. What should Blanca do about this error?
A. She should pay off and close as many of her credit accounts as possible within 30 days
B. She should contact a lawyer who can sue the credit bureau to get the error corrected
C. She should report the error to the credit bureau and consider placing a red flag or freeze on her credit report
D. Nothing - she can’t correct the error because credit reports can only be updated by financial or government institutions