PFLE.SS.7.D
Discuss how character, capacity, and collateral can adversely or positively impact an individual's credit rating and ability to obtain credit.
Personal Financial Literacy and Economics · Texas Essential Knowledge and Skills (TEKS) · TEKS 2010
Standard Unwrapping
AI-generated as a starting point — sign in to edit.Vocabulary
charactercapacitycollateralcredit ratingability to obtain creditindividualimpact
Skills
- discuss (how character, capacity, and collateral impact credit rating and access to credit) #dok2
- analyze (the ways character, capacity, and collateral can have positive or negative effects) #dok3
- explain (relationships between personal financial factors and access to credit) #dok2
Learning Targets
- I can identify the financial factors that affect an individual's credit rating. #dok1
- I can define character, capacity, and collateral as they relate to credit. #dok1
- I can explain how character, capacity, and collateral can influence a person's ability to get credit. #dok2
- I can discuss the positive or negative effects of character, capacity, and collateral on credit ratings. #dok2
- I can analyze real-life scenarios in which character, capacity, or collateral impacted a person’s credit. #dok3
Big Ideas
- Personal financial characteristics directly affect an individual's creditworthiness and access to credit.
- Understanding the factors affecting credit can help individuals make better financial decisions to maintain or improve their credit ratings.
Essential Questions
- What does it mean to have good character, capacity, or collateral when applying for credit?
- How do character, capacity, and collateral individually impact a person's ability to obtain credit?
- What actions might positively or negatively affect a credit rating?
- Why is understanding these factors important when making borrowing decisions?
- How do lenders use character, capacity, and collateral to evaluate potential borrowers?