Chapter 6Chapter 6Credit Bureaus andCollection Practices

Day 3

Essential Essential QuestionQuestionHow does your How does your credit rating affect credit rating affect you?you?

Journal ActivityJournal Activity Read “Credit Report Information” Questions:

◦ What are the 3 major companies that maintain credit reports?

◦ What might a creditor use your credit report and credit score for?

◦ How often does your credit report update?◦ What six main sections is your credit report

divided into?◦ How long can negative records stay on your

credit report?◦ Do all creditors report to all 3 credit bureaus?◦ How often should you check your 3 credit

reports?◦ If you find inaccurate information on your credit

report, who can you contact?

Journal Activity-3 TweetsJournal Activity-3 TweetsType 3 Tweets in Word & print

them.Your 3 Tweets should be

formative, clever, witty, opinionated, etc.

Partner up with someone who is doing something that you’re going to do on Spring Break.

Partner stars your best Tweet

Dave Ramsey VideosDave Ramsey VideosChapter Six — Credit Chapter Six — Credit Bureaus and Collection Bureaus and Collection Practices Part 1& 2Practices Part 1& 2

Credit ReportCredit ReportSample Credit Report

SummarySummary Is your FICO score an indication that you’re financially

winning? Your FICO score is computed by the following method:

35% is debt history, 30% is debt level, 15% is length of time in debt, 10% is type of debt and 10% is new debt.

Protect yourself from Identity Theft The credit bureau has 30 days to respond to a dispute Routine check-ups, along with paying your bills on

time, keeping your credit card balances below 35% of their limits, and correcting any inaccuracies will help ensure your credit reports are viewed in the most favorable light.

Control what you can control

Tell me one thing Tell me one thing that you learned that you learned today.today.

HomeworkHomeworkComplete “Reading A Credit

Report” Worksheet

Day 4 Day 4 Activity: “Avoiding Online Fraud”

worksheetDR Video-Chpt 6 Part 3 &4Game Day-Pay Day Game

Day 5Day 51) I Am a Financial Genius Journal Questions

I. Susy is active in several school organizations. She is planning to get a number of senior portraits taken. She begins a part-time job to pay for them. Which will me most likely her opportunity cost?

A. More time to spend with her family B. Less time for school organizations C. Fewer opportunities for scholarships D. Increased income

II. Chris’s dad told him that paying yourself first is a good method of savings. Which would be the best way for him to pay himself first?

A. Pay for necessary items before he wants B. Buy something expensive after paying bills C. Regularly deposit a set amount of her wages into a savings plan D. Cut back on spending

III. Why do lender and insurance companies use credit reports?

A. To show a history of bill paying practices B. To allow lenders/insurance companies to use discriminatory procedures C. To show all debts owned by applicant D. To obtain all of your personal information

Day 5 cont…Day 5 cont…2)

Dave Ramsey Unit 2 Review Quiz (Sporcle)

WORD BANK

branding cash advance credit Home Equity Loan opportunity cost

3000 emotion Experian transportation Pro Rata Debt List

financing overnight 10 FICO score Identity Theft

leasing co-signing afford It counsel Equifax

paradigm buyer beware 75% debt consolidation significant purchase

Transunion motives annually garnishment 3000

7 four walls collectors

Day 5 (cont…)Day 5 (cont…)

3) DR Video Chpt 6 Part 5 & 6

4) Pro Rata Debts Worksheet◦Homework (if not finished in class)

Day 6Day 6I am a Financial Genius Journal Questions

1. Which best explains why people should consider the opportunity cost of financial decisions? 

A. Every problem has a solution.

B. Sometimes there are no alternatives.

C. All goals can’t be achieved at the same time.

D. Choices are unlimited

2. Along with a monthly credit card statement, Susy got an offer to purchase a credit monitoring service for $10 a month. Which best explains why she should reject this offer?

A. She can monitor her credit report herself for free.

B. She will have to pay an additional fee for a copy of the report.

C. Financial advisors recommend that one buy identity theft insurance coverage instead

D. Credit card companies already give you the same service for free.

 

I am a Financial Genius I am a Financial Genius Questions (cont…)Questions (cont…)III. Bob applied for a small business loan, but was denied stating that he had some

negative incidents on his financial records. The bank would not give any details and Bob knew nothing about any financial problems. What should Bob do first to improve his chances of getting a loan from the bank?

 

A. Inform the loan officer that he will be willing to pay higher interest.

B. Report his problem to Department of Consumer Affairs.

C. Request a copy of her credit report from a major credit reporting agency.

D. Apply for a loan somewhere else.

 

IV. Which would most likely cause a lender to reject an application for a loan?

A. Applicant has only a few dollars in a savings account.

B. Applicant has history of only making minimum payments of some debts.

C. Applicant’s checking account record reveals at least 10 transactions each month.

D. Applicant’s total debt exceeds 50% of their income.

AssignmentsAssignments

2. Turn In Journal3. Define Review Terms (Below)4. Review Game5. TEST-Wednesday/Thursday

TermsTerms Financing

90 days same-as-cash

Opportunity cost

Myth

Paradigm

Leasing

Significant Purchase

Garnishment

Pro-rata

Inaccurate

Consolidation

Home Equity Loan

Credit Bureaus

ARM

Balloon

Shelf Position

Bankruptcy