Reading a credit report
You will need to adapt the information covered on this page depending on the level of your students. If your students are at a beginning level, you may
want to leave out a discussion of some of the finer points of reading credit information. If your students are at a higher level, you may want to obtain different kinds of sample credit reports from credit reporting agencies and compare how the information is presented in each report. For beginning-level students
Review the concepts found in the identification, residence, and employment sections of the report. These concepts include writing one’s name, address, phone number, Social Security number, and number of dependents; and reading and writing dates and job titles.

For more advanced students
Practice reading each column of the credit history section of the report, explaining such concepts as date
opened, credit limit, balance, amount past due, past due records, and
revolving credit.

Mention that credit reports sometimes report incorrect information. For this reason, it is a good idea to get a copy
of your credit report and check it for accuracy before applying for credit.

Going further
Invite a representative from a credit reporting agency or nonprofit credit counseling service to speak with students about credit reports and
establishing good credit habits.

Comprehension check
Have students work in pairs or small groups to locate the answers. For more practice, have students use the sample form to make up additional questions for their classmates to answer.

Talk about it
You may want to spend some time discussing Karen Smith’s credit history. Point out that Karen Smith appears to pay her bills on time. She has no late bills at this time. The lender should
see her as a good credit risk.

Point out that if Karen Smith were married, she might be applying for a loan as a co-borrower, and the credit record of both partners would be checked. It is important for each partner in a marriage to establish his or her own credit so that if he or she becomes divorced or widowed, he or she will have a credit record of his or her own, as Karen does.

Going further
Every credit reporting agency may present its information a little differently. If you can, get a copy of one or two additional sample credit reports from agencies. You may be asked to “white out” some of the personal information for privacy
reasons and look only at the credit history portion of the form.