#credit #card #applications #for #students
CREDIT AND Credit Cards
This section includes lessons on consumer credit cards, credit, and paying interest. Learn about credit with an introduction to credit cards, reading a credit card statement, and advanced lessons regarding incorrect credit card transactions.
Also, see our spending money category for more consumer related material.
Understanding Credit and Credit Cards
Credit cards, like loans, allow you to build up a credit history. This may help you with credit related activity such as getting a student loan, car loans, renting an apartment, or buying a house. Credit cards are also convenient since they provide a reduced need to carry cash or checks, and provide security in case of an emergency.
However, credit cards are not for everyone, and if you have one you need to act responsibly. You need to be able to afford a credit card, and also need to try to pay off the balance each month. The over-use of credit cards has been a major reason why so many individuals have too much debt, and why bankruptcy rates are high.
Consumers are bombarded with offers from credit card companies, offering various incentives and interest rate options. For those that fall into the credit trap, being in debt seems almost forever. Meanwhile, high interest charges and late payment fees eat up most of their available money. Many credit card holders do not even know how much they are paying in interest, and what impact it has on their overall financial well-being.
Use the following lessons to help teach and learn credit card basics:
Credit Cards Lessons and Worksheets
INTRODUCTION TO CREDIT CARDS
A worksheet introducing students to credit cards, credit, and paying interest.
CREDIT CARDS AND HOW THEY WORK
Students learn how credit cards work. Learn about the concept of credit, and how you are charged for using a credit card. Also information on debit cards.
An introduction to the concept of using cash verse using credit cards. Students learn why credit cards may be good or bad, depending on how they are used.
CHOOSING THE RIGHT CREDIT CARD
Students learn important criteria for choosing a credit card and the importance of using credit wisely.
READING A CREDIT CARD STATEMENT
An introduction to reading a credit card statement. Learn to read and identify the important items on a monthly credit card statement.
CREDIT CARD STATEMENT INCORRECT TRANSACTIONS
Advanced practice reading and correcting a monthly credit card account statement. Students must identify and correct their monthly statement.
ADDITIONAL LESSONS – BORROWING MONEY
Students learn about the reasons and responsibilities of borrowing money.
Sources of Credit: It Is In Your Interest?
Students learn about sources of credit and calculating interest rates.
Your Credit Score
Students learn about credit scores.
Consumer Credit Legislation
Students learn about consumer credit legislation.
ADDITIONAL LESSONS – CREDIT AND CREDIT CARDS
Students learn about credit cards.
Students learn about consumer fraud.
Credit Reports – You Thought Your Report Card Was Important
Students complete an activity sheet and discuss the advantages and disadvantages of using credit. Students read a scenario about a young person’s use of a credit card and answer some questions regarding repayment. Students learn about credit history, credit reports and credit-reporting agencies.
Creditors’ Criteria and Borrowers’ Rights and Responsibilities
Students discuss key terms related to credit and learn how creditors use capacity, character and collateral as criteria for making loans. Students learn about credit rights and responsibilities. Groups use role-play scenarios in order to identify and discuss the rights and responsibilities of using credit.
So How Much Are You Really Paying for that Loan?
Students learn what a payday loan is and the high cost involved in using such a loan. Working in groups, students calculate an annual percentage rate (APR) on a short-term loan.
To Rent-to-Own or not to Rent-to-Own?
Students review the elements of a contract. They discuss the characteristics of rent-to-own contracts and compare the cost of those contracts with the outright purchase of goods.
INFORMATIONAL ARTICLES ON CREDIT CARDS AND CREDIT
Using Credit Wisely
Learn why we have such poor credit habits, and what we can do to use credit wisely.
What’s your Credit Score?
Understand your credit score for applying and qualifying for a mortgage loan.
More on Credit Cards, Consumer Credit, and Debt Management
Informational resources on using credit cards wisely, credit repair, reducing credit card debt, basics on understanding credit reports, tips, advice, and help for managing debt, debt consolidation, student loans, understanding bankruptcy, how to consolidate credit, and more.