Choosing Credit

Have you ever tired to apply for a loan but couldn't get one? Or was denied by a car dealership because your credit score was too low? In Choosing Credit: Lesson 6 participants will learn how to build their credit, which credit is worth it, and the power of payments.

Participants Will:

  • Be able to list a variety of lenders.
  • Weigh the costs of credit against the advantages.
  • Evaluate their ability to handle credit payments before entering into credit agreements.
  • Understand the Annual Percentage Rate (APR) definition.
  • Analyze the effects of different APRs.
  • Explore how borrowing money from different sources can affect the real cost of an item.
  • Know the different types of high-cost lending options.
  • Compare the pros and cons of different type of lenders.
  • Create a plan for paying down debt.
  • Know how to power pay their debt.

Key Features:

  • Create your own plan for debt.
  • Understanding and analyzing the effects of different annual percentage rates.
  • Evaluate your ability to handle credit payments and which option is right for you.
  • Exploring how lending fees and interest rates can affect the cost of owning an item.
  • Customize activities fit to either a 30 or 60 minute timeframe.
  • Easily add more resources by replicating included master copies.

Activities Included:

  1. Who Loans Money?
  2. Would you use credit?
  3. Can I handle credit payments?
  4. APR Definition
  5. Whats the REAL cost?
  6. Lenders: the Good, the Bad, & the Ugly
  7. Power Pay Your Debt
  8. Wrap-up and Evaluation

What you'll need from the Resource Box:

  • Yes / No / Only If Signs: One set for each participant OR One set only for the facilitator if using the alternate method
    • One set of the 12 Question Signs (to show to participants) OR One copy of the Would You Use Credit? handout (for the facilitator to read from)
    • Optional: Would You Use Credit? handout, two copies for each participant

Additional Materials (not included):

 *= optional items

  • Pen or pencil for each participant
  • Sticky notes
  • Easel pad or white board
  • Markers
  • Tape (if using alternate method)
  • 44 pennies (for facilitator to demonstrate) or 44 pennies per participant or small group or 44 beans

To use credit wisely weigh the advantages against the costs, both of which can vary widely depending on the loan and the type of lender.