Lesson 3: Credit Scores & Auto Loans
Duration of Days: 6.5
Lesson Objective
Students will compare how a "Good" vs. "Bad" credit score changes a monthly car payment.
Why does my neighbor pay $200/mo and I pay $400/mo for the same car?
Credit Score
Interest Rate (APR)
Principal
NRT.Q.1
CRP.04
Description: Students use an APR table to see how a credit score of 550 vs. 750 changes their monthly car payment and the total interest paid over 5 years.
Purpose: To visualize the "Cost of Credit." Students see that "Bad Credit" can cost them thousands of extra dollars for the exact same car.
DOK Level: 3
Support: Use a "Loan Storyboard" to show how much money goes to the bank (interest) vs. the car (principal).
Extension: Calculate the total interest paid over a 72-month loan vs. a 48-month loan.
Comparing two loan offers and choosing the one that saves the most money over 5 years.
"Credit Score Ladder" visual
loan comparison charts
an online APR calculator