Credit intro lesson

Credit karma
- Between you an your partner on a white board, take 2-3 minutes to Answering the following questions:
1). What do I know about credit?
2). Why do you think credit is important? What is it used for?

Learning Target:
What? I will have the ability to describe what credit is and identify different type of credit and when to use them.
Why? This is important because I will be held financially responsible for myself and I will need to maintain a good credit score to remain financially healthy.
How? I know that I have got it by engaging in this activity, reflecting and leave with a basic understanding about credit.

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What is credit? Why is it important?

1. Credit is when you borrow money now, with the promise to pay it back later. It's like borrowing a book from the library—you get it now but agree to return it by a certain date.

2. Building Trust: Credit helps you build trust with lenders (like banks or credit card companies). If you borrow money and pay it back on time, they trust you more and may give you more money to borrow in the future.

3. Example: If you need a loan to buy a car or a house in the future, a good credit score (which shows you’ve paid off debts on time) helps you get approved. A bad credit score can make it harder to borrow money and may lead to higher interest rates. Which in the return makes what you are required to pay back on the loan more.

Take away's. You and your partner on one wb

1). Name at least two common types of credit?
2). What does your credit score reflect?
3). Is it wise to spend up to your credit limit on your credit card. Why or why not?

Take Away's

1). In your own words and to the best of your abilities, explain what is revolving credit and what is installment credit?

Take aways

1). What is one way to start to build a credit score?
2). What is the biggest contributor to your credit score?
3). Do you think having no credit score beneficial to your financial health. Why or why not?

Take away's

1). Why is having multiple types of credit help your credit score?
2). Why is my credit score important and what are some of the benefits of having a good score?
3). Why is paying your credit bills on time important for your credit score?

Take aways

1). When do you pay interest on your credit card?
2). Why would you not be approved for a credit card?
3). What is one strategy that was talked about in the video to help make sure you pay you credit bills on time?

On your own whiteboard

1). If you were financially stable and had a credit card, what are some things you would use your credit card to pay for right now?

Take away

In your own words, on your own white board, summarize all that you have learned about credit in 3 sentences or more. Be prepared to share :)