Category: Credit Scores

Question of the Day: What’s the average credit score for 18- to 24-year-olds?

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Mar 16, 2020
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Question of the Day, Credit Reports, Credit Scores
Answer: 630 Questions: Why are credit scores important? Why do you think 18- to 24-year-olds have the lowest credit scores? What is the relationship between age and credit score in this chart? Why do you think this relationship exists? What might be some of the reasons? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Credit Karma): Our Credit Trends show you how you compare to other Credit Karma members. See where you...

"Going from Broke:" Episode Summaries and Discussion Questions

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Feb 14, 2020
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Video Resource, Credit Cards, Credit Scores, Investing, Budgeting
Ashton Kutcher is one of the executive producers of a series called “Going from Broke,” focusing on the massive (student) debt issue facing young adults.  Chicken Soup for the Soul Entertainment is the ad-supported video streaming service that runs the series on Crackle, and it hit 5 million views after just 4 weeks.  The series appears to be attracting attention. Dan Rosensweig, another executive producer, is the CEO of a company called Chegg and is the host of the show....

QoD: What is the interest rate differential on car loans between those with bad credit and those with best credit?

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Feb 04, 2020
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Credit Scores, Question of the Day, Credit Reports
Answer: 4.4% vs. 16.7% (12.3% difference) Note: APR = Annual Percentage Rate (a.k.a. Interest Rate) Source: MyFICO Loan Savings Calculator as of 1/31/2020 (From NGPF Activity: Impact of Credit Score on Loans)  Questions: Why do you think that those who struggle with managing credit pay higher interest rates when they need a loan?  Looking at the column, TOTAL Interest Paid, how much more is someone with a 580 credit score paying in interest compared to someone with a 720 credit...

Reading List for January 24-26

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Jan 24, 2020
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Current Events, Credit Scores, Budgeting, Career, Investing, Retirement, Personal Finance
Current Events/Credit Scores One of the biggest stories hitting this week and running through social media is news of the new FICO scoring criteria. (USA Today) “Most consumers will see less than a 20-point swing in either direction,” David Shellenberger, FICO’s vice president, product management, scores, said in a statement on Thursday. “That’s roughly 110 million that will see only a modest change to scores, if at all.”   Budgeting Many of you shared...

NGPF Podcasts: Demetria Gallegos of WSJ on 9 Myths About Credit Scores

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Jan 10, 2020
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Credit Scores, Podcasts
Everything you ever wanted to learn about credit scores and more. Discover the myths, the realities and ways that you can improve your credit score in this informative podcast with Demetria Gallegos of the Wall Street Journal. Enjoy!    Details: 0:00~1:28 Introduction 1:28~6:10 Utilizing a Roth IRA 6:10~9:05 Learning about money growing up  9:05~11:47 Financial lessons learned from raising children 11:47~14:14 Myths about credit scores 14:14~15:08 Using a secured credit card...

QoD: You're new to credit and you don't pay your credit card bill for months. It gets sent to a collections agency. How much will your credit score decline?

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Jan 08, 2020
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Credit Scores, Question of the Day, Credit Cards
Answer: 224 points (from 599 to 375) Explanation: Your score sank 224 points. A credit card in collections means your credit score is now in the high-300s.  Questions: Why do you think not paying your credit card bill for months has such a big impact on someone who is new to credit? What do you think are the reasons that people can’t pay their credit card bills? Identify at least 3 reasons. What are strategies you can come up with to make sure that you are always in a...

Best of 2019..NGPF's Questions of the Day

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Dec 25, 2019
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Question of the Day, Behavioral Finance, Budgeting, Credit Cards, Credit Scores, Current Events, Investing, New Products
If you receive our daily blog updates, you know that we produce a Question of the Day every Mon-Thursday during the school year..which amounts to about 160 questions. Here are the 10 questions that garnered the most pageviews in 2019. See how many you can answer correctly: What's the average credit score needed to rent an apartment?  What percent of people age 75 and older are still working? What percent of U.S. millionaires are professional athletes? What percent of 18-34 year olds are...

NGPF Podcast: Rod Griffin on the current landscape for credit reports and credit scores

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Dec 20, 2019
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Podcasts, Credit Reports, Credit Scores
If you want to learn about credit scores and credit reports, there is no better teacher than Rod Griffin of Experian. Attend this webinar and you will learn how credit scores are determined, the educational tools available on the Experian website and recent changes that are helping to boost scores in certain situations. Enjoy!  Details:  0:00~0:57 Introduction 0:57~3:41 Rod’s role at Experian and the importance of teaching personal finance 3:41~4:59 The increase in ways for...

Last Reading List for 2019!!

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Dec 20, 2019
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Personal Finance, Budgeting, Credit Scores, Investing, Paying for College, Taxes, Retirement
Many of the articles this week have a common theme: reflecting on the 2010’s as the decade comes to a close. Wishing you all a joyful holiday season and hope you enjoy your well-deserved break!   Personal Finance Do you think the Social Security Administration should mail out statements annually, or let people log on and check themselves? (WAPO) Time again for New Years Resolutions: Here is a list from AICPA of 20 things you should consider doing to keep your financial life in order....

Chart of the Week: What's the relationship between credit card balances and credit scores?

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Nov 20, 2019
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Chart of the Week, Credit Cards, Credit Scores
  Questions: Those with _______________ credit scores have the highest credit card balances while those with ______________ credit scores have the lowest credit card balances.  What has been the overall trend with credit card balances for all credit scores since 2011?  Do you think that taking out more credit on a credit card is a sign of consumer optimism or pessimism?  Consumers with Exceptional credit scores have average credit card balances similar to those with Very...

Activity idea: How will this impact my credit score?

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Nov 18, 2019
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Credit Scores, Activities
This activity was adapted from a recent WSJ article (sub. required) about credit scores. The activity takes students through scenarios and students predict how each one will impact their credit score. What becomes evident quickly is that for consumers with limited credit histories, early missteps can have a dramatic negative impact on credit scores.  Enjoy! ...

QoD: You're new to credit and miss a payment on your credit card. How much will you credit score decline?

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Nov 10, 2019
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Question of the Day, Credit Scores, Research
Answer: 131 points (from 599 to 468) Explanation: Your score sank 131 points. As someone who is new to credit, you have the most to lose from a missed payment. This mistake will move you from Fair to Poor and make future credit more costly or more difficult to obtain. Questions: Why do you think a late payment has such a big impact on someone who is new to credit? What do you think are the reasons that people make late payments on their credit card? Identify at least 3 reasons. What are...

Reading List for October 25-27

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Oct 25, 2019
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Investing, Financial Literacy, Economics, Credit Cards, Credit Scores, Career
Investing We will start this week’s list with this mind-blowing headline: “Tesla overtake GM as most valuable automaker.” (Reuters) Comparing today’s IPO environment (the “Not-Com Bubble?”) to the “dot-com” bubble of 2000. (The Atlantic)   Financial Literacy A look at programs that bring experiential, hands-on learning about money into the classroom. (Reuters) The New York Times reviews three of the most popular personal finance books....

QoD: Order these based on which are most to least important to millennials: Instagram likes, credit scores, YouTube followers.

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Oct 16, 2019
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Question of the Day, Credit Cards, Credit Scores, Research
Hat tip to Beth Tallman for sharing this press release that led to this question of the day.    Answer: Credit Scores (59%) Instagram followers (48%) YouTube followers (40%) Here's the complete results:  Questions: Why is it important to increase your credit score?  Looking at the list in the chart above, which of these ratings/scores will have a financial impact? Why do you think that so many people would place higher value on increasing their social media likes...

4 Infographics to Start the School Year

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Sep 12, 2019
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Credit Cards, Credit Scores, Investing
Infographics to start the school year September 2019   PRINTABLE INFOGRAPHICS FOR 2019-20 NGPF has partnered with Visual Capitalist to bring you a series of infographics explaining key topics in personal finance. Each one delivers personal finance concepts in a compelling way, including text to read, graphs to interpret and questions to answer. Hang these in your classroom to reinforce student...