Types of Credit Activities

In this activity, students will be able to:

• Analyze the profiles of a few different individuals and
• Determine whether opening a credit card is a smart choice for them
• Examine their living situation, financial status, debt and employment to make the determination.

In this activity, students will be able to:

• Play the role of a loan shark 
• Understand what tactics lenders use to maximize their profits
• Determine which loan terms increase profits for lenders
• Learn about different types of loans and fees lenders offer and charge

In this activity, students will be able to:

• Classify different types of credit in three ways:
  
  • Installment loans vs. revolving credit
  • Secured debt vs. unsecured debt
  • Variable rate vs. fixed rate
• Get up, out of their seats, moving around the room to learn content in a fun, fast-paced fashion

Spanish materials are linked in the activity answer key under Materials & Prep

In this activity, students will be able to:

• Explore alternative lending options (beyond banks and credit unions). This includes peer-to-peer lending, microcredits, crowdfunding, and small business loans
• Research the target demographic, credit check, fees, interest rates, minimum amounts, term and more

In this activity, students will be able to:

• Analyze different types of credit (like auto loans, credit cards, money borrowed from a friend, and more)
• Categorize the credit in three ways:
  • Installment loans vs. revolving credit
  • Secured debt vs. unsecured debt
  • Variable rate vs. fixed rate

In this activity, students will be able to:

• Develop an understanding of how a loan is repaid by analyzing an amortization table
• Use the repayment schedule for a personal loan for a vacation to see how changes to monthly payments can affect total interest paid and the term of payment.

In this activity, students will be able to:

• Use an online credit card calculator to work through a variety of credit card debt scenarios caused by every day spending
• Investigate the impact of interest on the cost of their purchases

In this activity, students will be able to:

• Use a credit card calculator and some data from Consumer Reports to compare the cost of “purchasing” a washer dryer from Rent-to-Own versus purchasing the same washer dryer on a credit card.

In this activity, students will be able to:

• Use a mortgage calculator to help different individuals determine how their mortgage will look, including their monthly payment, total interest, down payment

In this activity, students will be able to:

• Use an auto loan calculator to compare the cost of different auto loans
• Explore how the down payment, APR, interest, cash allowance, credit score and fine print affect the terms of an auto loan

In this activity, students will be able to:

• Determine what features they value in a credit card and then conduct online research to determine which credit cards best meet their needs
• Compare and then select which card would be best for them

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In this activity, students will be able to:

• Take a variety of factors about individuals (salary, location and student loan debt)
• Use a student loan repayment calculator to preview their repayment options
• Determine which repayment option is best.

In this activity students will be able to :

• Research the pros and cons of college credit usage
• Learn how to effectively form a debate

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In this activity, students will be able to:

• Read a credit card statement 
• Understand how certain sections of a credit card statement impact other sections

With this Fine Print students will be able to:

• Read an auto title loan agreement by reviewing details such as interest rate and payment schedules  
• Recognize how auto title loans can cause consumers to fall into deeper debt

In this activity, students will be able to:

• Understand how to read a sample mortgage statement
• Analyze the different itemized amounts about a home loan, including outstanding principal, interest rate, escrow, and other fees

In this activity, students will be able to:

• Read a payday loan agreement by examining details including APRs and interest
• Recognize how payday loans can cause consumers to fall into deeper debt

In this activity, students will be able to:

• Understand how to read a credit card agreement through a step-by-step analysis of the Schumer Box (Note: The Schumer Box summarizes key terms of the agreement)
• Analyze the different fees associated with credit cards and how they can be avoided

In this activity, students will be able to:

• work within the average young person’s monthly budget to make payments on credit card debt accumulated over 4 years of college
• make decisions on where to spend and save in order to pay down debt

In this activity, students will be able to:

• Work in groups to either
  • Create a public service announcement teaching their audience to stay away from predatory lenders OR
  • Create advertisements convincing their target audience to use their type of predatory lending product

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In this activity, students will be able to:

• Use this reading guide to learn about all personal loans and strategies to use if a family member or friend asks for money.

In this activity, students will be able to:

• research three major laws regarding credit cards
  • The Credit Card Accountability, Responsibility and Disclosure, or Credit CARD, Act of 2009.
  • The Fair Credit Billing Act.
  • The Truth in Lending Act.

In this activity, students will be able to:

• Role-play declining to give personal loans to family and friends in a variety of real-world scenarios

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