Financial Literacy Club
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Credit & Debt · Lesson 1
What Credit Is
Part A. Vocabulary
Define each term in your own words.
Credit history
Part B. Guided notes
Fill in each blank using the word bank.
Word bank: AnnualCreditReport · carefully · interest · TransUnion
- Credit = borrow now, repay later, usually with .
- Your credit history lives in reports from Equifax, Experian, and .
- Check your reports free at .com — it doesn't hurt your score.
- No history isn't bad history. It's a blank page to build .
Part C. Check your understanding
Circle the best answer.
You buy a $300 bike with a credit card, then pay the card bill in full when it's due.
1. What actually happened?
- A. The money came straight out of your checking account.
- B. The card company paid for the bike, and you repaid it — borrowing that adds to your credit history.
- C. You took out an installment loan.
- D. The bike was free because you paid on time.
2. Checking your own credit report lowers your credit score.
True/False
A landlord runs a credit check on an apartment applicant.
3. What will the credit report most likely show?
- A. The applicant's grades and school attendance
- B. How much is in their savings account
- C. Their salary
- D. Their loans and cards, and whether they've paid on time
Part D. Apply it
Show your work.
1. Which of these appear on a credit report: your salary, your payment history, your bank balance, your credit card balances?
2. Where can you get your credit reports for free, and does checking them hurt your score?
Part E. Think about it
Answer in complete sentences.
1. Why would a landlord care how someone has handled credit cards?
2. Is it fair that people with no credit history can pay more for some things? What could change that?
Exit ticket
Name
Fill in the blanks: Credit means you ___ now and ___ later, usually with ___.