Chapter 6
Credit Bureaus and
Collection Practices
Day 3
Essential Question
How does your credit
rating affect you?
Journal Activity
Read “Credit Report Information”
 Questions:
◦ What are the 3 major companies that maintain credit
reports?
◦ What might a creditor use your credit report and credit
score for?
◦ How often does your credit report update?
◦ What six main sections is your credit report divided into?
◦ How long can negative records stay on your credit report?
◦ Do all creditors report to all 3 credit bureaus?
◦ How often should you check your 3 credit reports?
◦ If you find inaccurate information on your credit report, who
can you contact?

Journal Activity-3 Tweets
Type 3 Tweets in Word & print them.
 Your 3 Tweets should be formative, clever,
witty, opinionated, etc.
 Partner up with someone who is doing
something that you’re going to do on
Spring Break.
 Partner stars your best Tweet

Dave Ramsey Videos
Chapter Six — Credit Bureaus and
Collection Practices Part 1& 2
Credit Report

Sample Credit Report
Summary






Is your FICO score an indication that you’re financially winning?
Your FICO score is computed by the following method: 35% is debt
history, 30% is debt level, 15% is length of time in debt, 10% is type
of debt and 10% is new debt.
Protect yourself from Identity Theft
The credit bureau has 30 days to respond to a dispute
Routine check-ups, along with paying your bills on time, keeping
your credit card balances below 35% of their limits, and correcting
any inaccuracies will help ensure your credit reports are viewed in
the most favorable light.
Control what you can control
Tell me one thing that
you learned today.
Homework

Complete “Reading A Credit Report”
Worksheet
Day 4
Activity: “Avoiding Online Fraud”
worksheet
 DR Video-Chpt 6 Part 3 &4
 Game Day-Pay Day Game

Day 5
1) I Am a Financial Genius Journal Questions
I.
Susy is active in several school organizations. She is planning to get a number of senior portraits taken.
She begins a part-time job to pay for them. Which will me most likely her opportunity cost?
A.
B.
C.
D.
II.
More time to spend with her family
Less time for school organizations
Fewer opportunities for scholarships
Increased income
Chris’s dad told him that paying yourself first is a good method of savings. Which would be the best way
for him to pay himself first?
A.
B.
C.
D.
III.
Pay for necessary items before he wants
Buy something expensive after paying bills
Regularly deposit a set amount of her wages into a savings plan
Cut back on spending
Why do lender and insurance companies use credit reports?
A.
B.
C.
D.
To show a history of bill paying practices
To allow lenders/insurance companies to use discriminatory procedures
To show all debts owned by applicant
To obtain all of your personal information
Day 5 cont…

2) Dave Ramsey Unit 2 Review Quiz
(Sporcle)
WORD BANK
branding
cash advance
credit
Home Equity Loan
opportunity cost
3000
emotion
Experian
transportation
Pro Rata Debt List
financing
overnight
10
FICO score
Identity Theft
leasing
co-signing
afford It
counsel
Equifax
paradigm
buyer beware
75%
debt consolidation
significant purchase
Transunion
motives
annually
garnishment
3000
7
four walls
collectors
Day 5 (cont…)
3) DR Video Chpt 6 Part 5 & 6

4) Pro Rata Debts Worksheet
◦ Homework (if not finished in class)
Day 6
I am a Financial Genius Journal Questions
1.
2.
Which best explains why people should consider the opportunity cost of financial
decisions?
A.
Every problem has a solution.
B.
Sometimes there are no alternatives.
C.
All goals can’t be achieved at the same time.
D.
Choices are unlimited
Along with a monthly credit card statement, Susy got an offer to purchase a credit
monitoring service for $10 a month. Which best explains why she should reject
this offer?
A.
She can monitor her credit report herself for free.
B.
She will have to pay an additional fee for a copy of the report.
C.
Financial advisors recommend that one buy identity theft insurance coverage
instead
D.
Credit card companies already give you the same service for free.
I am a Financial Genius Questions
(cont…)
III.
Bob applied for a small business loan, but was denied stating that he had some
negative incidents on his financial records. The bank would not give any details and
Bob knew nothing about any financial problems. What should Bob do first to
improve his chances of getting a loan from the bank?
A.
Inform the loan officer that he will be willing to pay higher interest.
B.
Report his problem to Department of Consumer Affairs.
C.
Request a copy of her credit report from a major credit reporting agency.
D.
Apply for a loan somewhere else.
IV. Which would most likely cause a lender to reject an application for a loan?
A.
Applicant has only a few dollars in a savings account.
B.
Applicant has history of only making minimum payments of some debts.
C.
Applicant’s checking account record reveals at least 10 transactions each month.
D.
Applicant’s total debt exceeds 50% of their income.
Assignments
2. Turn In Journal
3. Define Review Terms (Below)
4. Review Game
5.TEST-Wednesday/Thursday
Terms

Financing

90 days same-as-cash

Opportunity cost

Myth

Paradigm

Leasing

Significant Purchase

Garnishment

Pro-rata

Inaccurate

Consolidation

Home Equity Loan

Credit Bureaus

ARM

Balloon

Shelf Position

Bankruptcy