Types of Credit Activities

ANALYZE: Should They Open a Credit Card?

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.

INTERACTIVE: Shady Sam

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

MOVE: Credit Musical Chairs

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

ANALYZE: Alternative Lending

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

ANALYZE: Categorizing Credit

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

ANALYZE: Understanding Amortization

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.

CALCULATE: Shopping with Interest

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

CALCULATE: The Cost of Rent-to-Own

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.

CALCULATE: Using a Mortgage Calculator

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

COMPARE: Auto Loans

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

COMPARE: Select a Credit Card

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

[This activity has no answer key]

COMPARE: Which Repayment Option is Best?

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.

DEBATE: Should College Students Have Credit Cards?

In this activity students will be able to :

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

[This activity has no answer key]

FINE PRINT: Credit Card Statement

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

FINE PRINT: Auto Title Loan Agreement

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

FINE PRINT: Mortgage Bill

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

FINE PRINT: Payday Loan Agreement

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

FINE PRINT: Schumer Box

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

PROJECT: Budgeting for Your Credit Card Payments

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

PROJECT: Create a PSA or Ad for Predatory Lending

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

[This activity has no answer key]

READ: Personal Loans

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.

RESEARCH: Credit Card Laws

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.

ROLEPLAY: Say NO to Loan Requests

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

[This activity has no answer key]