Importance of the Topic:

This humorous vignette reminds us that how well we use money affects our credit rating and the willingness of others to lend us money. It also affects any interest rates that we might have to pay on borrowed money and, indeed, could determine whether or not we would be able to borrow money in the first place. Ensuring that we deal responsibly with our finances is, therefore, extremely critical. Despite the importance of a credit rating, a great many people do not know their credit score and never ensure that the information recorded is correct. Understanding the importance of your credit rating and what affects it is critical for all of us.

Desired Outcome, Knowledge, or Skill:

1. Understand that everyone who borrows money, or has a credit card, has a credit score.
2. Realize that lenders use your credit score to determine the risk they will take in lending you money.
3. Appreciate that your credit score is not private information – it can be viewed by those from whom you are wanting to borrow money.
4. Understand that your history of paying off debts, and whether or not you pay on time, is shown on your credit history.
5. Know that failing to pay debts, missing a payment, or not paying on time affects your credit rating.
6. Understand the importance of knowing your credit rating and ensuring the information is accurate.

Possible Activities:

1. With a partner, make a list of things you would consider before you would lend money to someone and then check your own worthiness against this list.
2. Go online and check your credit rating.
3. Make a list of the types of things that you think would affect your credit rating and then examine the list to see how well you are doing.
4. If you are looking for a group or student activity on credit scores you might consider the following websites.
   • Activity Idea: How To Make Credit Scores Engaging!
   • A Lesson Plan to Understand Credit Scores