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?