Title: Using Credit
Subject: Social Studies
Strand: Financial Literacy (Ending in 2022-2023)
This cluster includes the following benchmarks.
Related Access Points
This cluster includes the following access points.
Compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for late payment or missed payments.
Compare how banks compete to offer low introductory credit rates, which increase over time or when a payment is missed or late.
Explain the difference between secured and unsecured loans as they relate to collateral, risks and interest rates.
Describe the benefits of making a down payment on a loan.
Explain how credit bureau reports help lenders make credit decisions.
Discuss the concept of a credit score as it applies to obtaining a loan.
Describe how employers, landlords and insurance companies use credit scores
Explain the consequences of failure to repay a loan.
Discuss that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors
Discuss bankruptcy options, benefits and consequences for consumers who are unable to repay debt.
Explain why people apply for a mortgage to purchase a home and the consequences of not making payments.
Discuss the laws that protect consumers who use credit.
Explain that consumers are entitled to a free copy of their credit report annually to check for errors.
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