1. Figured by your loan officer. Are you qualified to borrow money?
Your Credit Rating
Figured by your loan officer.
Are you qualified to borrow money?
Disclaimer:
This activity was created for students in middle school. This is a simulated credit evaluation pertaining to possible activities of this age group. This credit report should not be compared, by accuracy, of an actual credit report.
This presentation was created by Candace Pauchnick
July 31, 2011

2. Calculating your Credit Rating:
Directions:
The student acting as the loan officer asks his/her partner the following questions. If the student answers “Yes” then the “loan officer” clicks on the “Yes” star for the points earned. The same is true for the “No” answers. (Both stars need to be clicked for each question before moving to the next question.)
Calculating your Credit Rating:
Under the star are your credit points. No
Yes
Question 1:
Question 1:
Have you borrowed money, more than one time, from a friend in the past 3 months. 10
Question 2:
Question 2:
If you have ever borrowed money from a friend do you pay it back within 2 to 3 days?
(If you never borrow money you earn 10 points. 10
Question 3:
Question 3:
Do you always do your homework on time? 10
Question 4:
Question 4:
Are you earning mostly “A”s and “B”s? 10

3. Calculating your Credit Rating continued. (Page 2)
Yes No
Question 5:
Have you ever had a “U” in citizenship this year or last year?
Question 5: 10
Question 6:
Question 6:
Do you have a job or have you volunteered to help others (done community service)? 10
Question 7:
Question 7:
Have you lived in the same place for more than a year? 10
Question 8:
Question 8:
Do you like to save money? 10
Question 9:
Question 9:
Do you enjoy spending money? 10
Question 10:
Question 10:
Have you ever bought something because it was on sale but you really didn’t need it? 10

4. The Credit Rating Scale
Calculating your Credit Rating continued. (Page 3)
As your loan officer I will add up your points. The amount of points you earned will determine what your credit rating is and how much I will loan you.
The Credit Rating Scale
100 points: Congratulations! You are an excellent credit risk and I will be happy to loan you our maximum amount money.
90 points: You are a good credit risk and I will loan you our maximum amount of money.
80 points: You are a fair credit risk and I will loan you some money, but not the maximum amount we offer.
70 points: You are an okay credit risk and I will loan you a little money, but not the maximum amount we offer.
60 points: You are a poor credit risk. Please try to change some of your behavior and come back again to borrow money.
50 – 10 points: You appear to have money and organizational problems. I will be happy to be your financial advisor to help you.

5. Your Credit Report Analysis
As your loan officer why do you think we asked the types of questions we did concerning your risk for credit?
If your report was excellent what does this say about you and why would we loan you money?
If your report was poor what does this say about you and why would we not loan you money?