Unit 4 Managing Credit

Overview

Your Credit History

Students will be able to

• Enumerate the components of a credit report and how long each data type is retained

• Understand which people or organizations may review your credit report and why

• Explain key components of the Fair Credit Reporting Act and how it impacts lenders and borrowers

Read a Credit Report

Students will be able to

• Read a credit report

• Understand the importance of reviewing one’s credit report and the steps to take to find and dispute errors

Intro to Credit Scores

Students will be able to

• Name the components of a credit score and how they’re calculated

• Explain the impact of timely payments and low debt on a credit score

• Identify ways of finding out one's credit score

Why Credit Score Matters

Students will be able to

• Describe how their credit score impacts their ability to borrow money and at what rate

• Understand the implications of a thin file and how they can build credit and improve their score

• Summarize the rules contained in the Equal Credit Opportunity Act

Identity Theft

Students will be able to

• Understand different types of identity theft and how they might occur

• Take steps to identify and prevent personal identity theft

• Explain actions to take if they become a victim of identity theft

Debt Management

Students will be able to

• Understand the consequences for not paying one’s debts

• Generate a list of responsible strategies that can be used by an individual to pay down and eliminate their debts

• Explain the difference between High Rate and Debt Snowball repayment methods

Predatory Lending

Students will be able to

• Explain what a payday loan is and how it can cause users to fall into a cycle of debt

• Identify what financial need payday lenders are meeting and why consumers use payday loans

• Explore payday loan regulation and usage rates across the country