Building Credit from Scratch

45-minute agenda

1. 0–5 min

   Warm-up

   Post: “How can you build credit if you need credit to get credit?”

   Teacher note: Secured cards, student cards, becoming an authorized user, and credit-builder loans are designed for exactly this.

2. 5–17 min

   Direct instruction

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

   • Under 21: independent income or a co-signer for a card.
   • Secured cards, student cards, authorized user, credit-builder loans.
   • One small bill + autopay in full.
   • Low utilization and patience build scores.

   Use the “See it” slide (A simple first-year credit plan) to make the idea visual.

3. 17–22 min

   Worked example

   Walk through “Leo's first 12 months” on the slides. Pause before the result and ask students to predict it.

4. 22–32 min

   Year-One Plan

   Format: pairs · 10 minutes

   1. Scenario: an 18-year-old with a part-time job opens a secured card with a $300 limit.
   2. Pairs choose one small monthly bill to put on the card and set up autopay for the full balance.
   3. Pairs calculate the balance that keeps utilization under 10% and under 30%.
   4. Pairs list three checkpoints for the year (e.g., check reports, ask about graduating to an unsecured card).

   What to look for: Under 10%: $30 or less. Under 30%: $90 or less. A streaming bill or phone payment on autopay works well.

5. 32–37 min

   Check for understanding

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

   1. Which is the safest first step? — B. Open one secured or student card and put a small bill on autopay
   2. With a secured card, your deposit usually becomes your credit limit. — True
   3. Which monthly balance keeps utilization in a healthy range? — A. $50
6. 37–42 min

   Discussion

   • What's one small, regular bill you could use to build credit safely?
   • Why might someone avoid credit entirely? What are the downsides?
7. 42–45 min

   Exit ticket

   Prompt: Under 21, what do you generally need to get a credit card on your own?

   Answer: Independent income, or a co-signer where the card issuer allows one.