Grade: 9 Lesson # 9

How is your credit report used?How can you improve your credit report?

SS.912.FL.4.7 Describe that, in addition to assessing a person’s credit risk, credit reports and scores may be requested and used by employers in hiring decisions, landlords in deciding whether to rent apartments, and insurance companies in charging premiums.

Correlated Literacy Standards

LAFS.910.W.1.1 Write arguments to support claims in an analysis of substantive topics or texts, using valid reasoning and relevant and sufficient evidence.

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SS.912.FL.4.7Describe that, in addition to assessing a person’s credit risk, credit reports and scores may be requested and used by employers in hiring decisions, landlords in deciding whether to rent apartments, and insurance companies in charging premiums.

How to Improve Your Credit Report

Lesson Number: 9

Correlated Florida Standards (See Full Text on Cover Page)LAFS.910.W.1.1

Essential Question What strategies can you use to improve your credit report?

Learning Goals/Objectives Identify strategies to improve credit report and credit scores. Understand why a good a credit report is important.

Overview In this lesson, students discover ways in which they can improve their credit score on their credit report.

They will consider some hypothetical scenarios and strategies that can help build their credit. Students will also develop a written response exploring their own methods to improve credit, thus internalizing the strategies to increase their credit scores.

Materials PowerPoint Presentation: “How to Improve Your Credit Score” (included in Lesson 9 File) Handout # 1: Improving Your Credit Score Handout # 2: “Note to Self Activity” (Included in lesson) Handout Key: “Note to Self Activity” (Included in lesson)

Time 50 minutes

Activity Sequence

INTRODUCTION/HOOK (5 Minutes)1. Divide class into 2 groups (just split left and right side of class to make it easy). 2. Tell the left side of the class they are the group with excellent credit scores.3. Tell the right side of the class they are the group with very poor credit scores. 4. Explain that today we are going to discover how to all be in the group with excellent credit scores. 5. Ask students to write down one way they think they can improve their credit, so that banks would be

more likely to loan them money. (Sample responses include have a high paying job, pay bills on time, sign a contract to repay loan, etc.)

6. Have the students share some of their responses.

ACTIVITY

1. View and discuss the PowerPoint Presentation: “How to Improve Your Credit Score”. The PPT introduces 7 ways to improve credit scores on their credit reports. The students should take notes on each

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way to improve their credit score. The students should create a chart titled “How to Improve My Credit Score” in their notes. They should number the lines #1 through #7. They should write down each step to improve their credit score and any notes clarifying those steps. (15 Minutes)

2. Distribute Handout # 1. Review the components of a credit score, actions that will hurt the score, and ways to improve the score. Interpret the graph and explore how the information relates to improving one’s credit score. Discuss the importance of each component listed on the graph. (5 Minutes)

3. Handout- “Note to Self Activity”. Students will complete the handout that asks the following questions:

o Imagine your life in 20 years after you have been working for a while. What job do you think you might be doing? How much money do you think you will make at that job per year? How will ensure that you pay your bills on time every month? What types of credit might you apply for (home, car, credit cards, etc.)? Why? Imagine you have $10,000 available to spend on credit cards. How much is a responsible amount to use if you are trying to keep your credit score high? Explain at least two other ways you will try to improve your credit score. (20 Minutes)

CLOSURE (5 Minutes) Review the essential questions and discuss student’s ideas on ways to keep their credit scores high.

OPTIONAL EXTENSION SUGGESTION/HOME LEARNING Have students write a 5 paragraph essay on the importance of good credit and how they will ensure they

have good credit in the future.

Sources/Bibliographic Information that contributed to this lesson: Iowa Credit Union Foundation

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Handout # 1

Source: Iowa Credit Union Foundation

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Handout #2

Name____________________________________ Note To Self Activity

Directions: Answer the following questions in complete sentences using your notes from class to help you if needed.

1. Imagine your life in 20 years after you have been working for a while. What job do you think you might be doing?

2. How much money do you think you will make at that job per year?

3. How will ensure you pay your bills on time every month?

4. What types of credit might you apply for (home, car, credit cards, etc.)? Why?

5. Imagine you have $10,000 available to spend on credit cards. How much is a responsible amount to use if you are trying to keep your credit score high?

6. Explain at least two other ways you will try to improve your credit score.

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Note To Self Activity Answer Key

Directions: Answer the following questions in complete sentences using your notes from class to help you if needed.

1. Imagine your life in 20 years after you have been working for a while. What job do you think you might be doing?

a. Responses may vary. Doctor, accountant, lawyer, teacher, etc.

2. How much money do you think you will make at that job per year?a. Responses may vary. $10,000-$1,000,000+

3. How will ensure you pay your bills on time every month? a. Responses may vary. Put reminder in my calendar, use auto-pay from a bank, pay online, pay all

bills on the 1st of month, have a friend remind you, etc.

4. What types of credit might you apply for (home, car, credit cards, etc.)? Why?a. Responses may vary. Home- so I have a place for my family and me. Car- to get to work. Credit

cards- to build credit, earn points for rewards, etc.

5. Imagine you have $10,000 available to spend on credit cards. How much is a responsible amount to use if you are trying to keep your credit score high?

a. Responses may vary. They should spend very little of the money. The goal would always be to be at less than 30% utilization. So 30% would be about $3,000 or less.

6. Explain at least two other ways you will try to improve your credit score. a. Responses may vary. Keep balances low on credit cards, have a mix of installment loans (car,

house, furniture, phone), keep utilization low (low balance compared to how much credit is available to me), etc.

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