The Three C's of Credit

Students play the role of credit providers and assess the credit worthiness of an individual with a loan request and randomly selected borrower characteristics. Students classify those characteristics based on the three C’s of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

•  Lesson (pdf)

•  PowerPoint slides (pptx)

The Making Personal Finance Decisions curriculum teaches valuable personal finance lessons grounded in economic theory. The curriculum is divided into 10 themed units, with each unit containing two lessons. The twenty individual lessons employ a variety of teaching strategies designed to engage students in the learning process and equip them with the knowledge and skills necessary to make informed personal finance decisions. The Three C’s of Credit is lesson 9A of Unit Nine: Borrowing.


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Education Level: 9-12
Subjects: Economics Personal Finance
Concepts: Banks Credit Decision-Making Incentives Interest Lenders/Borrowers Risk
Resource Types: Lesson PowerPoint
Languages: English
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