What is a Credit Score?

What is a Credit Score?

Poll

Jose has a girlfriend named Joselyn.

Jose kissed 7 others girls while he was dating Joselyn.

Joselyn breaks up with Jose.

Amanda wants to date Jose.

How well can Jose be trusted on a scale of 1-5?

1 = Don't trust him at all 5 = Trust him, he will never break your heart.

• 1

• 2

• 3

• 4

• 5

Open Ended

A friend of yours needed to get to work and was out of gas. They asked you to borrow $20 and promised to repay you on Friday. Two months later, you never received the money from your friend. That same friend asked to borrow money for gas and once again promised to pay you back. The friend said they would get fired if they weren't at work. You gave your friend another $20. 3 months go by and your friend still hasn't paid you back the $40.

You also saw that your friend went to a concert you yourself couldn't afford. Will you lend your friend money again???

Open Ended

To make sure we are all on the same page...

What is a loan?

How does a business give loans to strangers?
How do you trust people you don't know?

​A number is assigned to adults based on their credit worthiness. Credit Score charts can look different.
300-850

Dropdown

A credit score is​

Select answer

Draw

What is the lowest credit score?

Draw

What is the highest credit score?

Open Ended

Adults earn a credit score when they begin paying bills and applying for loans and credit cards. Your credit score is a measure of how well you have handled money that you have borrowed (credit). A good credit score shows that you are financially responsible, reliable, and most likely a low-risk borrower.

A credit score is also know as a FICO score, named after Fair Isaac Corporation which introduced the original formula and score. There are three different credit score agencies, using different formulas, so you may have three different scores and those scores change daily.

How do adults earn a credit score?

Multiple Choice

Adults earn a credit score when they begin paying bills and applying for loans and credit cards. Your credit score is a measure of how well you have handled money that you have borrowed (credit). A good credit score shows that you are financially responsible, reliable, and most likely a low-risk borrower.

A credit score is also know as a FICO score, named after Fair Isaac Corporation which introduced the original formula and score. There are three different credit score agencies, using different formulas, so you may have three different scores and those scores change daily.

A good credit score shows people you are unlikely to pay back borrowed money?

• True

• False

• I'm addicted to my phone and need to put it in the pocket.

Open Ended

Adults earn a credit score when they begin paying bills and applying for loans and credit cards. Your credit score is a measure of how well you have handled money that you have borrowed (credit). A good credit score shows that you are financially responsible, reliable, and most likely a low-risk borrower.

A credit score is also know as a FICO score, named after Fair Isaac Corporation which introduced the original formula and score. There are three different credit score agencies, using different formulas, so you may have three different scores and those scores change daily.

Who first created the credit score?

Multiple Choice

A credit score is also known as a --

• Payment History

• FICO Score

• Find Isaac

• Anti-Trust Score

Open Ended

Adults earn a credit score when they begin paying bills and applying for loans and credit cards. Your credit score is a measure of how well you have handled money that you have borrowed (credit). A good credit score shows that you are financially responsible, reliable, and most likely a low-risk borrower.

A credit score is also know as a FICO score, named after Fair Isaac Corporation which introduced the original formula and score. There are three different credit score agencies, using different formulas, so you may have three different scores and those scores change daily.

Why might I have 3 different credit scores?

Open Ended

Your credit score is made up of five main categories (basically you are judged on these five actions):

1. Payment History - this section lists all late, missing and on-time payments.

2. Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

3. Length of Your Credit History - the longer the history of borrowing money, the more points you get.

4. Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

5. Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

What are the names of each category?

Multiple Select

Your credit score is made up of five main categories (basically you are judged on these five actions):

1. Payment History - this section lists all late, missing and on-time payments.

2. Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

3. Length of Your Credit History - the longer the history of borrowing money, the more points you get.

4. Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

5. Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

Payment History - How might you lose points in this category?

• Paying bills on time

• Missing a payment

• Paying a bill late

Dropdown

Your credit score is made up of five main categories (basically you are judged on these five actions):

Payment History - this section lists all late, missing and on-time payments.

Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

Length of Your Credit History - the longer the history of borrowing money, the more points you get.

Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

Total Amount You Owe - The more money you borrow, the ​

Select answer

your credit score.​

Multiple Choice

Your credit score is made up of five main categories (basically you are judged on these five actions):

1. Payment History - this section lists all late, missing and on-time payments.

2. Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

3. Length of Your Credit History - the longer the history of borrowing money, the more points you get.

4. Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

5. Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

Length of Credit History - According to this category, which person below would get more points?

• Jose opened a credit card at 35. Jose is 36 today.

• Addison bought her SUV using an auto loan she opened at 22. She is currently 30.

• Jason opened a best buy card when he was 82. Jason is died the next day.

Reorder

Reorder the following from BEST to WORST score when it comes to LENGTH OF CREDIT HISTORY.

*Assuming each person started earning a score at 18.

• 60 year old

• 42 year old

• 35 year old

• 32 year old

• 18 year old

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Open Ended

What does the word Inquiry mean? Google it

Multiple Choice

Your credit score is made up of five main categories (basically you are judged on these five actions):

1. Payment History - this section lists all late, missing and on-time payments.

2. Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

3. Length of Your Credit History - the longer the history of borrowing money, the more points you get.

4. Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

5. Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

Credit Inquires - According to this category, which person below would get LOSE points?

• In the past two months, Andrew has applied for an auto loan, boat loan, gold cart loan, Old Navy credit card, Wal-Mart credit card and a Discount Tire card.

• Emma applied for her first credit card.

• Brody has paid cash for everything his entire life.

Multiple Choice

Too many credit inquires can hurt your score.

Who hurt their score more?

• Evan applied for an auto loan today.

• Jeffery applied for a Footlocker Store credit card.

• Mariah applied for a Macys and Discount Tire credit card last week and a Walmart credit card today.

Multiple Choice

Your credit score is made up of five main categories (basically you are judged on these five actions):

1. Payment History - this section lists all late, missing and on-time payments.

2. Total Amount You Owe - this section shows the total amount of borrowed money you owe. You get more points for only spending 30% of the credit (money) available to you.

3. Length of Your Credit History - the longer the history of borrowing money, the more points you get.

4. Credit Inquires - the section show how many loans or credit cards you have applied for. You will lose points for applying for too many loans.

5. Types of Credit in Use - you get more points for diversity such as having a auto loan, credit card, mortgages...

Types of Credit Use - According to this category, which person below would GAIN points?

• Ricardo has a mortgage and credit card.

• David has a mortgage.

• Christian rents, has a Lowes card, an auto loan and a mortgage.

Labelling

Use your packet to complete the pie chart.

Drag labels to their correct position on the image

Total Amount Owed

15%

10%

Types of Credit

35%

Payment History

Length of Credit History

30%

10%

Credit Inquiries

Categorize

Options (4)

Pay bills late

owe a lot of money

Pay bills on time

be responsibility with money

Organize these options into the right categories

Hurts your Credit Score

Helps your credit score

Multiple Select

Use page 2.

Who can check your credit score?

SELECT ALL THAT APPLY

• Employers

• Apartments/

  Landlords

• Credit Cards

• Car Insurance

• Home Loans