| Code |
Description |
| SS.912.FL.4.1 (Discontinued after 2023-2024): | Discuss ways that consumers can compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for late payment or missed payments. |
| SS.912.FL.4.10 (Discontinued after 2023-2024): | Analyze the fact that, in extreme cases, bankruptcy may be an option for consumers who are unable to repay debt, and although bankruptcy provides some benefits, filing for bankruptcy also entails considerable costs, including having notice of the bankruptcy appear on a consumer’s credit report for up to 10 years. |
| SS.912.FL.4.11 (Discontinued after 2023-2024): | Explain that people often apply for a mortgage to purchase a home and identify a mortgage is a type of loan that is secured by real estate property as collateral. |
| SS.912.FL.4.12 (Discontinued after 2023-2024): | Discuss that consumers who use credit should be aware of laws that are in place to protect them and that these include requirements to provide full disclosure of credit terms such as APR and fees, as well as protection against discrimination and abusive marketing or collection practices. |
| SS.912.FL.4.13 (Discontinued after 2023-2024): | Explain that consumers are entitled to a free copy of their credit report annually so that they can verify that no errors were made that might increase their cost of credit. |
| SS.912.FL.4.2 (Discontinued after 2023-2024): | Discuss that banks and financial institutions sometimes compete by offering credit at low introductory rates, which increase after a set period of time or when the borrower misses a payment or makes a late payment. |
| SS.912.FL.4.3 (Discontinued after 2023-2024): | Explain that loans can be unsecured or secured with collateral, that collateral is a piece of property that can be sold by the lender to recover all or part of a loan if the borrower fails to repay. Explain why secured loans are viewed as having less risk and why lenders charge a lower interest rate than they charge for unsecured loans. |
| SS.912.FL.4.4 (Discontinued after 2023-2024): | Describe why people often make a cash payment to the seller of a good—called a down payment—in order to reduce the amount they need to borrow. Describe why lenders may consider loans made with a down payment to have less risk because the down payment gives the borrower some equity or ownership right away and why these loans may carry a lower interest rate. |
| SS.912.FL.4.5 (Discontinued after 2023-2024): | Explain that lenders make credit decisions based in part on consumer payment history. Credit bureaus record borrowers’ credit and payment histories and provide that information to lenders in credit reports. |
| SS.912.FL.4.6 (Discontinued after 2023-2024): | Discuss that lenders can pay to receive a borrower’s credit score from a credit bureau and that a credit score is a number based on information in a credit report and assesses a person’s credit risk. |
| SS.912.FL.4.7 (Discontinued after 2023-2024): | Describe that, in addition to assessing a person’s credit risk, credit reports and scores may be requested and used by employers in hiring decisions, landlords in deciding whether to rent apartments, and insurance companies in charging premiums. |
| SS.912.FL.4.8 (Discontinued after 2023-2024): | Examine the fact that failure to repay a loan has significant consequences for borrowers such as negative entries on their credit report, repossession of property (collateral), garnishment of wages, and the inability to obtain loans in the future. |
| SS.912.FL.4.9 (Discontinued after 2023-2024): | Explain that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors. |
This cluster includes the following access points.
| Access Point Number |
Access Point Title |
| SS.912.FL.4.AP.1: | Compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for late payment or missed payments. |
| SS.912.FL.4.AP.2: | Compare how banks compete to offer low introductory credit rates, which increase over time or when a payment is missed or late. |
| SS.912.FL.4.AP.3: | Explain the difference between secured and unsecured loans as they relate to collateral, risks and interest rates. |
| SS.912.FL.4.AP.4: | Describe the benefits of making a down payment on a loan. |
| SS.912.FL.4.AP.5: | Explain how credit bureau reports help lenders make credit decisions. |
| SS.912.FL.4.AP.6: | Discuss the concept of a credit score as it applies to obtaining a loan. |
| SS.912.FL.4.AP.7: | Describe how employers, landlords and insurance companies use credit scores |
| SS.912.FL.4.AP.8: | Explain the consequences of failure to repay a loan. |
| SS.912.FL.4.AP.9: | Discuss that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors |
| SS.912.FL.4.AP.10: | Discuss bankruptcy options, benefits and consequences for consumers who are unable to repay debt. |
| SS.912.FL.4.AP.11: | Explain why people apply for a mortgage to purchase a home and the consequences of not making payments. |
| SS.912.FL.4.AP.12: | Discuss the laws that protect consumers who use credit. |
| SS.912.FL.4.AP.13: | Explain that consumers are entitled to a free copy of their credit report annually to check for errors. |
