Day 91

Lesson Objectives

  • Describe the elements of a credit score.
  • Understand how to obtain a credit report.
  • Explain how a credit score affects creditworthiness and the cost of credit.
  • Explain the factors that affect a credit score.
  • Analyze a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries. 

Assignment CU2.3

  1. Watch Video 2.1
  2. As you watch the video, record the missing words from page 90 of the textbook as they pop up on the left side of the video screen by filling in this form.  (page 90) .
  3. Discussion Questions:
    1. Why is the FICO score really an “I Love Debt” score?
    2. Can you really live without a credit score?
    3. Why are five components below used to create the FICO score?
      • Debt History (35%)
      • Debt Levels (30%)
      • Duration of the Debt (15%)
      • Type of Debt (10%)
      • New Debt (10%)
    4. Does the FICO score measure wealth or how well you manage money?

Assignment CU2.4

  1. Pick one of the myths presented thus far:
    • By co-signing a loan, I am helping out a friend or relative.
    • Cash advance, payday lending, rent-to-own, title pawning, and tote-the-note lots are needed services for lower-income people to help them get ahead.
    • The lottery and other forms of gambling will make me rich.
    • You need to take out a credit card or car loan to “build up your credit score.”
  2. Create a new Google Document, title it Myths Debunked-(your initials), and move it into your Lesson 2 folder.
  3. Write a persuasive essay to someone who believes that particular myth to be true.  Remember that a persuasive essay attempts to convince someone that your point of view is valid. In your essay, be sure to discuss both sides of the position so you can effectively counter the opposing view.
  4. Use one other source of information besides your student text to support your argument. You can search for information at or use a search engine and type a summary of your myth in the search box (for example, “lottery tax on poor”).
  5. Your persuasive essay (Font:  Times New Roman, Font Size:  12, Spacing:  Double-Spaced) will include the following four paragraphs:
    • Introductory paragraph: Provide a clear statement of your position in the topic sentence. Give two clear arguments that support this position.
    • One or more supporting paragraphs: Each argument stated above should be covered in a separate paragraph. Support each paragraph with specific examples, facts, and reasoning.
    • One paragraph stating the opposite viewpoint: Use an opposing statement and then refute it. For example, you might say, “One could argue that (state opposite viewpoint), but I believe that (state your viewpoint).”
    • Closing paragraph: Restate the position. Reaffirm the most compelling argument. Do not introduce new arguments in the conclusion.