Exploring Credit Reports and Building Positive Credit History

The video tutorial covers personal financial literacy for sixth graders, focusing on credit reports and credit history. It uses a story about a boy named Tim to illustrate the concept of credit history and its importance. The tutorial explains how credit history affects financial opportunities, such as loans and insurance, and describes what a credit report contains. It also discusses credit scores and their ranges, highlighting the impact of financial decisions on one's credit history.

What did Tim ask to borrow money for the first time?

• A new game for his PS4

• Takis from the lunch line

• A textbook for school

• A new bicycle

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Why did the narrator say they wouldn't lend Tim 60 cents?

• Because Tim never asked for 60 cents

• Because Tim always repaid on time

• Because Tim had a bad credit history with the narrator

• Because the narrator didn't have 60 cents

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Who might check your credit history?

• Your pets

• Your teachers

• Landlords and lenders

• Your friends

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What can a bad credit history affect?

• Your choice of restaurants

• Your ability to borrow books from the library

• Your ability to rent an apartment or get a loan

• Your grades in school

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Why is it important to have a good credit history?

• To make more friends

• To secure loans with favorable terms

• To win a sports competition

• To get good grades

What is contained in a credit report?

• Your favorite color

• Your borrowing, spending, and payment history

• Your social media profiles

• Your video game high scores

How long can negative information remain on your credit report?

• 7 to 10 years

• 3 years

• 1 year

• 5 years

What might happen if you have a poor credit score?

• You might not get a loan or will have high interest rates

• You will become famous

• You will automatically get a better job

• You will win a prize

What is a good credit score considered to be?

• Below 579

• 580 to 669

• Over 740

• 670 to 739

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What does defaulting on a loan mean?

• Paying it off early

• Transferring it to a friend

• Increasing the loan amount

• Stopping payments on it

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