Teaching Tip: This “quiz” is a great way to begin your lecture on credit scores. While this exercise can be done online, it can just as easily be done in class, where the correct answer and reasoning behind that answer is presented immediately after your students answer the question. Of course, if you can project the Internet onto a screen in class – that’s an ideal way to work through this quiz.
As you learn in Chapter 6, Using Credit Cards – The Role of Open Credit, your credit score has an enormous effect on your financial life, influencing everything from the rate you pay on your credit cards, to the size of your credit line, to your insurance rates, to your mortgage rate, to the amount of junk mail you receive asking you to take on one more credit card. In short, when it comes to lending money to you, you will be evaluated by your credit score. With a strong credit score you will also be paying a much lower interest rate on any money you borrow.
So, it makes sense to know what kinds of moves can set your credit score backwards, after all, as you learned in Principle 1: The Best Protection is Knowledge. Fortunately, to help you make better decisions and to help keep you from sabotaging your credit score, Kiplinger put together an online quiz titled, “Will It Sink Your Credit Score?” Take a crack at the quiz and see how many questions you get correct.
Teaching Tip: Again, this quiz works great as an in-class presentation when you introduce credit scores.
- Which question/answer surprised you the most? Why? Be prepared to share your answer with your class.
- How many and which questions did you get incorrect? Be prepared to share your answer with your class.
- Do you have any idea what your credit score currently is? Be prepared to share your answer with your class.