Financial Literacy 20, 30
Course Configurations
Explore the process of obtaining credit including the role of down payments and credit calculations.
Indicators for this outcome
| (a) | Explain how total debt service ratio (TDSR) impacts one’s access to credit. |
| (b) | Describe situations when a down payment for a purchase is required and when it is optional. |
| (c) | Justify the choice of making an optional down payment for variousscenarios. |
| (d) | Perform credit calculations (e.g., monthly payments, total interest andtime to pay balance in full) using various technologies including online tools. |
| (e) | Assess why various credit products have different interest rates. |
| (f) | Research the concept of right of offset and discuss ways to avoid an offset on one’s bank account. |
| (g) | Explain the 5 Cs (i.e., character, capacity, capital, collateral and conditions) of credit. |
| (h) | Discuss how creditors use the 5 Cs to determine one’s creditworthiness. |
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