What is Credit?

Poll

Overall, how do you feel about going to school?

• LOVE IT

• DISLIKE IT

• NEUTRAL

Poll

How do you feel about receiving your report cards?

• Excited

• Nervous

• I really don't like receiving them

A DETAILED REPORT OF
AN INDIVIDUALS CREDIT
HISTORY PREPARED BY A

CREDIT BUREAU

BASICALLY IT'S LIKE AN "ADULT REPORT CARD"

W H A T I S C R E D I T ?

Multiple Choice

How many credit reporting bureaus (Teachers) do you think there are?

• Less than 5

• Between 6 - 10

• Between 11 - 15

• More than 15

3 M A J O R C R E D I T B U R E A U S

Multiple Choice

Which one of these is "NOT" a Credit Reporting Bureau? (Report Card)

• Transunion

• Experian

• FICO

• Equifax

Open Ended

What do you think are examples of "legitimate businesses" who check your credit (adult report card)?

E X A M P L E S O F L E N D E R S

Drag and Drop

What do you think is the lowest and highest credit score (grade) you can receive?


Lowest ​ ​

Placeholder

and the highest ​

Placeholder

Drag these tiles and drop them in the correct blank above

300

850

0

1000

500

650

250

C R E D I T S C O R E ( F I C O ) R A N G E

F

D

C

B

A

Multiple Choice

What percentage of Americans do you think have good credit (Good Grades)?

• 0 - 25%

• 26% - 50%

• 51% - 75%

• 76% - 100%

F I C O S C O R E B R E A K D O W N

A

B

C

D

F

Multiple Choice

The lowest and highest credit score (report card) that you can earn

• 250 - 700

• 300 - 800

• 300 - 850

• 350 - 800

Labeling

Label the parts of the chart with it's correct category

Drag labels to their correct position on the image

New Credit

Payment History

Credit Mix

Length of Credit

Credit Cards

C R E D I T S C O R E ( F I C O ) R A N G E

550 Total

Points To Earn

850 - 300 = 550

F

D

C

B

A

Fill in the Blanks

The amount of possible points that you can "Actually EARN" for your credit score is

?

Open Ended

What is the difference between a debit and a credit card?

DEBIT CARD CREDIT CARD

MONEY YOU ACTUALLY

HAVE IN THE BANK

VS

DEBIT CARD CREDIT CARD

MONEY YOU ACTUALLY

HAVE IN THE BANK

MONEY YOU ARE

"BORROWING"

VS

LENDERS WANT TO KNOW IF YOU

HAVE PAID YOUR BILLS ON TIME

THIS CATEGORY MAKES UP THE BIGGEST PERCENTAGE

P A Y M E N T H I S T O R Y 3 5 %

(192.5 Points)

OWING MONEY DOES NOT NECESSARILY
MEAN YOU ARE A HIGH-RISK BORROWER

WITH A LOW SCORE

IF YOU CAN'T PAY IT BACK EACH MONTH, YOU "CAN'T

AFFORD IT"

C R E D I T C A R D S

( C R E D I T U T I L I Z A T I O N ) 3 0 %

(165 Points)

WHAT PERCENTAGE
SHOULD I KEEP MY

CREDIT CARD BALANCE

BELOW?

WHAT PERCENTAGE
SHOULD I KEEP MY

CREDIT CARD BALANCE

BELOW?

10%

EXAMPLE: IF MY CREDIT LIMIT IS $100,

MY BALANCE SHOULD BE LESS THAN $10.

Multiple Choice

If my credit card has a limit of $500, this means that I should not use (charge) more than ____? (hint, it's 10% of the limit)

• $40

• $100

• $50

• $200

Multiple Choice

If my credit card has a limit of $700, this means that I should not use (charge) more than ____? (hint, it's 10% of the limit)

• $70

• $140

• $7

• $500

IN GENERAL, THE LONGER CREDIT

HISTORY YOU HAVE, THIS WILL
INCREASE YOUR FICO SCORE

IT'S IMPORTANT TO START BUILDING YOUR CREDIT

NOW.....BUT ONLY IF YOU HAVE SELF-CONTROL

L E N G T H O F C R E D I T H I S T O R Y 1 5 %

(82.5 Points)

FICO SCORES WILL CONSIDER YOUR MIX OF

CREDIT CARDS, RETAIL ACCOUNTS, INSTALLMENT

ACCOUNTS, & MORTGAGE LOANS

C R E D I T M I X I N U S E ( 1 0 % )

(55 Points)

OPENING SEVERAL CREDIT ACCOUNTS IN

A SHORT PERIOD OF TIME REPRESENTS

GREATER RISK

ESPECIALLY FOR PEOPLE WHO DON'T HAVE A LONG

CREDIT HISTORY

N E W C R E D I T ( 1 0 % )

(55 Points)

Match

Match the following Credit Score categories and their percentages

• New Credit

• Credit Cards

• Payment History

• Length of Credit History

10%

30%

35%

15%

• 10%

• 30%

• 35%

• 15%

W H A T D O E S " I N Q U I R Y " M E A N ?

T Y P E S O F I N Q U I R I E S

CREDIT INQUIRIES ARE CLASSIFIED AS EITHER:

"SOFT INQUIRIES"

"HARD INQUIRIES"

OR

S O F T I N Q U I R I E S

ONLY "YOU" CAN SEE THEM

H A R D I N Q U I R I E S

ALL "LENDERS" CAN SEE

THIS IMPACTS YOUR CREDIT SCORE

Multiple Choice

Buying a car would be considered a ___

• Hard Inquiry

• Soft Inquiry

Multiple Choice

Checking your own credit (report card) would be considered a ___

• Hard Inquiry

• Soft Inquiry

Multiple Choice

What type of inquiry has a negative impact on my credit score (grade)

• Soft Inquiry

• Hard Inquiry

3 K E Y T A K E A W A Y S

PAY YOUR BILLS ON TIME

1.

2. KEEP BALANCES LOW ON CREDIT CARDS AND
OTHER REVOLVING CREDIT ACCOUNTS

3. APPLY FOR AND OPEN NEW CREDIT ACCOUNTS
ONLY AS NEEDED