Financial Literacy: Impact of Credit Score on Loans

For this activity, you’ll need the credit scores you calculated previously in the activity CALCULATE: FICO Credit Scores. If you’ve already completed that activity, copy over the credit scores in the chart below; if not, you’ll need to do that activity now. Use the highest number from their estimated range. Note that Danielle had no credit history, but since that time she’s opened one credit card and made her payments on time. Her current score is 685.

Now, assume that each of the three students has graduated from college, maintained their credit score, secured a $50,000/year job, and now wants to go car shopping. Use the FICO Loan Savings Calculator to determine how much the loan is going to cost Sam, Jessica, and Danielle.

Now, let’s see how Sam’s, Jessica’s, and Danielle’s credit scores would impact a mortgage. This time they’re each trying to finance $250,000 of a condo using a 30-year fixed mortgage. Use the FICO Loan Savings Calculator and enter the information on your worksheet to answer the questions.


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