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REVIEW
What is the difference between a debit card and
credit card?
When should you use a debit card?
When should you use a credit card?

INTRODUCTION

What do you know about credit scores?

What does it mean to have good credit?
Bad credit?

CREDIT SCORE
Credit score is a standardized measurement of the
potential for a borrower to repay debt
Good credit scores are important when renting an
apartment, buying a car, or other big purchases
Trust that a loan will be repaid must be established
Credit score is like a persons financial report card

CREDIT SCORE CONTINUED

Information to calculate credit score includes
Bank account balance
Employment history
Residence history
Payment history
Credit scores can effect
Loan opportunities
Apartment/housing options
Insurance rates
Telephone or utilities rates

WHAT CAN NEGATIVELY EFFECT YOUR

CREDIT SCORE?
Late payments
Exceeding your credit limit
Applying for credit frequently
Having an account turned over to a collection
agency

FICO CREDIT SCORE

1. Payment History= 35%
2. How much credit you have compared to how much credit you use=
30%
3. Account age and activity= 15%
4. Credit Inquiries= 10%
5. Types of credit= 10%

ACTIVITY: KEEPING SCORE GAME

Reminders:
You can only use your exchange card, discard card, and
Accept/Required Draw card once each throughout the
game
You should rotate who goes in each round
Make sure to keep track of your credit score
After you have played all 8 rounds, calculate your score

KEEPING BALANCE GAME

Were there any factors that affected your credit score
that you hadnt considered?
In general, did the positive situations move the score up
faster than the negative situations moved it down?
Will you make financial decisions differently in the future
now that you have a better understanding about credit
score?