Credit Scores

45-minute agenda

1. 0–5 min

   Warm-up

   Post: “Guess: what's the range for FICO credit scores, and what do you think matters most?”

   Teacher note: FICO Scores run 300–850. Payment history (35%) and amounts owed (30%) matter most.

2. 5–12 min

   Direct instruction

   Present the lesson slides. Make sure students leave with these points:

   • FICO Scores run 300–850. Higher = lower risk.
   • Payment history (35%) and amounts owed (30%) matter most.
   • Keep utilization low — well under 30% of your limit is a common guideline.
   • Checking your own score doesn't hurt it. Applying for credit can, a little.

   Use the “See it” slide (What goes into a FICO Score) to make the idea visual.

3. 12–17 min

   Worked example

   Walk through “Same car, different score” on the slides. Pause before the result and ask students to predict it.

4. 17–22 min

   Live demo

   Project see what the rate does from the slides or the Loan Calculator. Change one input at a time and have students call out what they think will happen.

5. 22–32 min

   Score Detective

   Format: pairs · 10 minutes

   1. Give pairs four fictional profiles. Ana: $300 balance on a $1,000 limit, never late. Ben: $900 on a $1,000 limit, never late. Cai: $100 on a $2,000 limit, one payment 30 days late last month. Dee: no credit cards, one year of on-time student loan payments.
   2. Pairs calculate each person's utilization (where there's a card).
   3. Pairs name the factor that most helps and most hurts each person.
   4. Pairs suggest one change for each person to improve their score.

   What to look for: Utilization: Ana 30%, Ben 90%, Cai 5%. Ben's high utilization and Cai's late payment hurt most; Dee's short history is the limit on her score.

6. 32–37 min

   Check for understanding

   Use the question slides — or run them as a Four Corners game. Answers:

   1. Which habit has the biggest effect on a FICO Score? — C. Paying every bill on time
   2. What's most likely going on with her score? — A. Her high utilization (90%) is probably pulling her score down; paying the balance lower should help.
   3. A higher income automatically gives you a higher credit score. — False
   4. What's the main risk to Jordan's credit? — B. Several hard inquiries and new accounts at once can lower the score.
7. 37–42 min

   Discussion

   • Should landlords and insurers be allowed to use credit information? What are the arguments on each side?
   • Why might someone with a high income still have a low credit score?
8. 42–45 min

   Exit ticket

   Prompt: Does checking your own credit score lower it? What kind of inquiry is it?

   Answer: No. Checking your own score is a soft inquiry.