Explain credit rating and credit report.
DefinitionExplanation should consist of
- identifying the advantages of establishing credit
- describing the way credit is rated (point system) and the contents of a credit report
- identifying what information is included in a person’s credit record or history (e.g., income, payment records, employment record, other personal factors)
- reviewing credit rating scores and describing their implications
- describing the factors that make up a credit score
- describing ways to build credit as an authorized user on an account
- explaining how a customer’s credit rating affects eligibility for credit and employment
- explaining how to access one’s personal credit record before applying for credit, or, if denied credit, identifying reasons for a credit check
- describing steps for correcting errors in one’s credit report.
Other Related Standards
Economics and Personal Finance Standards of Learning
The student will demonstrate knowledge of credit and loan functions by
- evaluating the various methods of financing a purchase;
- analyzing credit card features and their impact on personal financial planning;
- identifying qualifications needed to obtain credit;
- identifying basic provisions of credit and loan laws;
- comparing terms and conditions of various sources of consumer credit;
- identifying strategies for effective debt management, including sources of assistance;
- explaining the need for a good credit rating;
- comparing the costs and conditions of secured and unsecured loans; and
- comparing the types of voluntary and involuntary bankruptcy and the implications of each.