Why Credit MattersMS. Zucchero

Keeping Score: Why Credit Matters

What is Credit?

Think about your last purchase…

How did you pay for it…..?

Keeping Score: Why Credit Matters

Imagine that you loaned your brand new car to a stranger….

What factors would you consider before letting someone borrow your car?

Keeping Score: Why Credit Matters

Creditworthy - a person suitable to receive credit especially based on them being reliable in paying money back

5 key factors:*Payment History (whether or not you pay your bills on time)

*Amount owed to current creditors ( whether you have a car payment or a balance on CC)

*Length of credit history (the longer you’ve had access to credit the better)

*Types of Credit Used (car, mortgage, credit card, education)

*Number of open accounts (lenders can be afraid of borrowers with too much credit available)

Creditworthy

The key factors are compiled on a person’s credit report with an overall credit score

Credit number between 300-850

Would you want a 95% on a Math Test? Or a 55% on a Math Test?

Spot the Credit Crisis1. Please download the “Why Credit Matters” brochure from the

class website and read about taking control of your credit score

2. Then please download the “Spot the Credit Credit Crisis” Worksheet

3. Please complete the worksheet. You may work with a partner

4. Be ready to share your answers with the class!!!!!!!