Types of Credit Activities
ANALYZE: Should They Open a Credit Card? (Sp)
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.
- Available in English & Spanish
CARTOONS: Car Payments
In this activity, students will be able to:
- Examine a number of cartoons about car payments and choose one to analyze in more depth
- Explain the cartoon's key message about car payments and how it depicts that message
CARTOONS: Predatory Lending
In this activity, students will be able to:
- Examine a number of cartoons about predatory lending and choose one to analyze in more depth
- Explain the cartoon's key message about predatory lending and how it depicts that message
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
ANALYZE: Alternative Lending (Sp)
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
- Available in English & Spanish
ANALYZE: Categorizing Credit (Sp)
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
- Available in English & Spanish
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 (Sp)
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
- Available in English & Spanish
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 (Sp)
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
- Available in English & Spanish
COMPARE: Auto Loans (Sp)
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
- Available in English & Spanish
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? (Sp)
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.
- Available in English & Spanish
DEBATE: Should College Students Have Credit Cards?
In this activity students will:
- Study research around the pros and cons of college credit usage to learn how to effectively form a debate
[This activity has no answer key]
FINE PRINT: Credit Card Statement
With this Fine Print 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
With this Fine Print 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
With this Fine Print 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
With this Fine Print 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
FINE PRINT: Vehicle History Report
With this Fine Print students will be able to:
- Read a vehicle history report
- Decide if a used car is worth purchasing based on the details of the report
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 Web Quest
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
- Available in English & Spanish
[This activity has no answer key]