Title: Examine credit options.
Course: Family and Consumer Sciences Exploratory III (19251-12) > Section: Maximizing Consumer and Family Resources

Examination should explore

- credit ratings and building credit
- service fees
- financial obligations
- the inherent risks involved with credit such as those related to
  - protecting one’s identity (monitoring credit reports)
  - making only minimum payments on credit cards
  - becoming involved with predatory lending operations (e.g., car title loans, payday loans)
  - developing a poor debt-to-income ratio
  - secured vs. unsecured debt (including the concept of collateral).

Process/Skill Questions:

Thinking

- What is a credit report? How can you obtain a free copy annually?
- What is predatory lending? What are the risks involved?

Communication

- How do you determine whether a non-solicited credit offer is appropriate for your needs?
- How is your credit report used by employers, lenders, and landlords?

Leadership

- Why is it important to establish good credit?
- Why is it important to pay bills on time?

Management

- How do you build good credit?
- What community groups and entities help with debt management?