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Vocabulary
charactercapacitycollateralcredit ratingability to obtain creditindividual
Skills
  • discuss (how character, capacity, and collateral can impact credit rating and ability to obtain credit) #dok2
  • analyze (positive and negative impacts of character, capacity, and collateral on credit) #dok3
  • identify (factors that influence credit rating) #dok1
  • explain (connections between individual financial behaviors and credit rating outcomes) #dok2
Learning Targets
  • I can identify the key factors that influence an individual's credit rating. #dok1
  • I can discuss how character, capacity, and collateral affect credit rating and the ability to obtain credit. #dok2
  • I can explain the difference between positive and negative impacts of character, capacity, and collateral on credit. #dok2
  • I can analyze scenarios to determine how character, capacity, and collateral could change someone's access to credit. #dok3
Big Ideas
  • A person's ability to obtain credit depends on more than just financial numbers—character, capacity, and collateral all play a role.
  • Understanding what impacts a credit rating enables individuals to make informed choices that support their financial well-being.
Essential Questions
  • What does it mean for someone to have 'good character' in the context of credit?
  • How do a person's financial decisions demonstrate capacity to repay loans?
  • Why is collateral important when applying for credit?
  • How can character, capacity, and collateral improve or harm an individual's credit rating?
  • What steps can someone take to improve their ability to obtain credit?