Before You Begin Examine the Prompt

Many adults make poor choices about credit and financing. In order to understand smart choices and the results of poor choices, you will complete a research project comparing three people and their circumstances. You will identify, calculate, and project credit-card debt, payments, and mortgage rates. You will write a five hundred word essay comparing the three people, their particular circumstances, and your projected advice.

Directions
Meet Gary. He has a great credit score and little credit card debt, with only two cards and owing $2,000 on each with a 10% interest rate. He has been working at his current job for four years with a steady income.

Meet Greg. He has a good credit score and some credit card debt, with five cards owing $2,000 on each. He has reached the maximum limit on two of them, but one is late, regularly costing him additional late fees. All have a 12% interest rate. He has been working at his current job for a year.

Meet Bob. Meet Bob. He has a bad credit score and high credit-card debt, with seven cards, owing $4,000 on each. He has reached the maximum limit on five of them, but all are late each month, costing additional late fees. All have a 15% interest rate. He has had six jobs in the past two years but has been working at his current job for three months.

Part I.

Assign a credit rating number to each person.
Explain why each person has a certain credit rating.
How can each person improve or maintain that credit rating?
Estimate the monthly credit-card payments for each of these people.
How can each person become more responsible?
Write a plan of improvement for each person.
Part II.

Each person wants to buy a home. Why should each person buy and not rent? Find each one a $200,000 house to purchase, using a local real-estate listing. What would the interest rate be for each? What would the monthly mortgage payment be? Why is each a different amount?

Part III.

Summarize the results of your research, and explain why it is financially responsible to make wise choices, using these three people as examples.

Prompt
Write a five hundred word essay answering all the questions about the three scenarios. Be sure to discuss the creditworthiness of each person, as listed below.

the credit card problems and payments
the suggestions for having better credit
the mortgage and house choices for each
the final summary comparing each person's credit story
Rubric
Click here for a printable version of the project rubric that you will be graded by.

Criteria Points Possible 25 16-20 9-16 0-9 Points Earned
Format and Information
‧Information
‧Summary 25 Format correct, with all completed information. Format correct, with limited information. Format correct, with missing information. Format is lacking, and information is incomplete.
Research
‧Evident
‧Clear 25 Research is evident beyond the information in the lessons. Some research is evident beyond the lessons. No research evident, only information from lessons. Information is lacking.
Word Choice/Grammar
‧Precision
‧Effectiveness
‧Imagery 25 Broad range of descriptive words; creative examples and vivid details and images, with correct grammar. Language is functional and appropriate; descriptions may lack detail or be overdone, with a few grammatical errors. Words may be correct but simplistic; no attempt at detail, description, or examples, with multiple grammatical errors. Word choice is limited, words are often misused, supporting detail and examples are nonexistent, errors throughout.
Detailed Answers
‧Complete explanation
‧Correct Math Calculations 25 Explained reasons and results. Explained most reasons and results. Explained some reasons and results. Some reasons and results were not explained.
100