Consumer Mathematics Unit 5 introduces students to the concept of credit scores, exploring how credit scores are developed, the main credit report bureaus, and how to build good credit. Students also learn about factors to consider when selecting credit cards and finance charges associated with credit cards. Lastly, students learn about using credit responsibly, potential consequences of excessive debt, and strategies to correct excessive debt.
In this course, students will study:
· Credit scores
· Factors that impact credit scores
· Credit cards and finance charges
· Factors to consider when choosing a credit card
· Using credit responsibilities
· Consequences of excessive debt
· Strategies to correct excessive debt
· Strategies to improve credit scores
Course Objectives
· Define key financial terms associated with credit cards.
· Calculate finance charges using different interest rates.
· Understand information included on credit card statements.
· Understand the impact of making only minimum payments on credit cards.
· Compare credit cards with reference to fees, APR, grace period, and credit limit.
· Identify types of credit.
· Understand what is reported to credit bureaus.
· Identify the factors lenders consider when making credit decisions.
· Understand how credit score affects creditworthiness and the cost of credit.
· Identify how to use credit responsibly and maintain creditworthiness.
· Define key terms associated with credit problems.
· Recognize signs of excessive debt and describe possible consequences.
· Know strategies for avoiding and correcting credit problems.