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Chapter 6

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Chapter 6

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  1. Chapter 6 Credit Bureaus and Collection Practices Day 3

  2. Essential QuestionHow does your credit rating affect you?

  3. Journal Activity • Read “Credit Report Information” • Questions: • What are the 3 major companies that maintain credit reports? • What might a creditor use your credit report and credit score for? • How often does your credit report update? • What six main sections is your credit report divided into? • How long can negative records stay on your credit report? • Do all creditors report to all 3 credit bureaus? • How often should you check your 3 credit reports? • If you find inaccurate information on your credit report, who can you contact?

  4. Journal Activity-3 Tweets • Type 3 Tweets in Word & print them. • Your 3 Tweets should be formative, clever, witty, opinionated, etc. • Partner up with someone who is doing something that you’re going to do on Spring Break. • Partner stars your best Tweet

  5. Dave Ramsey VideosChapter Six — Credit Bureaus and Collection Practices Part 1& 2

  6. Credit Report • Sample Credit Report

  7. Summary • Is your FICO score an indication that you’re financially winning? • Your FICO score is computed by the following method: 35% is debt history, 30% is debt level, 15% is length of time in debt, 10% is type of debt and 10% is new debt. • Protect yourself from Identity Theft • The credit bureau has 30 days to respond to a dispute • Routine check-ups, along with paying your bills on time, keeping your credit card balances below 35% of their limits, and correcting any inaccuracies will help ensure your credit reports are viewed in the most favorable light. • Control what you can control

  8. Tell me one thing that you learned today.

  9. Homework • Complete “Reading A Credit Report” Worksheet

  10. Day 4 • Activity: “Avoiding Online Fraud” worksheet • DR Video-Chpt 6 Part 3 &4 • Game Day-Pay Day Game

  11. Day 5

  12. Day 5 cont… • 2) Dave Ramsey Unit 2 Review Quiz (Sporcle) WORD BANK

  13. Day 5 (cont…) 3) DR Video Chpt 6 Part 5 & 6 • 4) Pro Rata Debts Worksheet • Homework (if not finished in class)

  14. Day 6 I am a Financial Genius Journal Questions • Which best explains why people should consider the opportunity cost of financial decisions?  • Every problem has a solution. • Sometimes there are no alternatives. • All goals can’t be achieved at the same time. • Choices are unlimited 2. Along with a monthly credit card statement, Susy got an offer to purchase a credit monitoring service for $10 a month. Which best explains why she should reject this offer? • She can monitor her credit report herself for free. • She will have to pay an additional fee for a copy of the report. • Financial advisors recommend that one buy identity theft insurance coverage instead • Credit card companies already give you the same service for free.

  15. I am a Financial Genius Questions (cont…) III. Bob applied for a small business loan, but was denied stating that he had some negative incidents on his financial records. The bank would not give any details and Bob knew nothing about any financial problems. What should Bob do first to improve his chances of getting a loan from the bank? • Inform the loan officer that he will be willing to pay higher interest. • Report his problem to Department of Consumer Affairs. • Request a copy of her credit report from a major credit reporting agency. • Apply for a loan somewhere else. IV. Which would most likely cause a lender to reject an application for a loan? • Applicant has only a few dollars in a savings account. • Applicant has history of only making minimum payments of some debts. • Applicant’s checking account record reveals at least 10 transactions each month. • Applicant’s total debt exceeds 50% of their income.

  16. Assignments 2. Turn In Journal 3. Define Review Terms (Below) 4. Review Game 5. TEST-Wednesday/Thursday

  17. Terms • Financing • 90 days same-as-cash • Opportunity cost • Myth • Paradigm • Leasing • Significant Purchase • Garnishment • Pro-rata • Inaccurate • Consolidation • Home Equity Loan • Credit Bureaus • ARM • Balloon • Shelf Position • Bankruptcy