Semester Course - 2020-21Mr. Marynovskyy



Semester Course6.3 Intro to Credit ScoresStudent Activity PacketName: In this lesson, you will learn to: Name the components of a credit score and how they’re calculatedExplain the impact of timely payments and low debt on credit scoreIdentify ways of finding out one's credit score.ResourcesQuestions1 Discussion PromptsDiscuss these questions with your classmates or with a partner.Estimated time: 5 minsIf someone were to grade you on your financial habits, what grade would you get? Explain why you would receive that grade.2All You Need to Know About Credit ScoresCredit scores quantify the information on your credit report, so that it’s easy to compare levels of creditworthiness. Use this infographic to answer some introductory questions on credit scores. Estimated time: 5 minsWhat percent of Americans do know their credit score? Are you in that group? At what credit score range do you think it’s unlikely that banks would offer you a loan or credit card? What are the 5 factors taken into account when calculating a credit score? Say you’ve got a credit score of 750, and you miss one credit card payment. Will this impact your credit score MORE or LESS than if your original score was 650? Why do you think this is the case? 3What Is a Credit Score? | Kal Penn ExplainsWatch this video on how FICO credit scores are calculated. Then, use the information to answer the questions on the right:Estimated time: 5 minsWhat is the scale for minimum to maximum possible credit score? Do you ideally want to have a HIGH credit score or LOW? Payment History and Total Debt, together, comprise 65% of your score. Why do you think it’s so high? Does the method for calculating credit scores seem fair to you? Why or why not? 4INTERACTIVE: FICO Credit ScoresFICO’s website offers a free Score Estimator, which can be useful to investigate how financial decisions impact score. Follow the directions on this worksheet in order to complete the activity. Estimated time: 15 minsTHIS FILE IS ON OUR WEEBLE. DO NOT DOWNLOAD FROM HERE. 5Exit TicketEstimated time: 5 mins What are the 2 most important factors taken into account when calculating credit score? For each action, write YES or NO for whether it will likely decrease your credit score:You request a copy of your credit reportYou open 5 new credit cards in one monthYou are 3 months late paying your student loan billYou lose your job, & it takes 4 months to find a new one ................
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