Demonstrate credit management skills.

Demonstration should include

• defining credit report and credit score
• identifying ways to build and maintain good credit
• explaining the true cost of paying only the minimum due on a loan or credit card
• explaining the effects of bad credit
• recognizing the warning signs of poor debt management.

Process/Skill Questions:

• How should one keep track of one’s credit score?
• What habits can improve your credit score?
• What is debt-to-income ratio? What is the ideal ratio?
• When is it better to take out a loan instead of putting a purchase on a credit card?
• What are strategies for paying down debt?
• How long can bankruptcy remain on your credit record?