Credit Counseling & Repair

Credit Counseling & Repair Workshop Curriculum

The National Economics Department, NAACP Financial Freedom Campaign Program Outline Total Workshop Time: 90mins

I. Overview (5mins)

a. Purpose of workshop

a.i.1. Participants will understand how to establish good credit and its importance

a.i.2. Participants will learn that credit is a financial tool in wealth building

a.i.3. Participants will make informed banking and purchasing decisions

b. NAACP’s Financial Freedom Campaign’s mission/ goal(s) of implementing these programs:

b.i.1. To educate and empower

b.i.2. To serve as advocates

b.i.3. To build capacity

c. Benefits of attending this workshop

c.i.1. Access to accurate information

c.i.2. Opportunity to ask questions of an expert

c.i.3. Access to local and national resources

c.i.4. Opportunity to network with others

II. Introduction (20mins)

a. Ice Breaker

a.i.1. A credit spectrum will be drawn on the board. Participants will each be asked where they are currently on the spectrum, and their thoughts about why they think they are in the predicament that they are in. a.i.1.a.i. The spectrum: A long time line with 4 tick marks, (1) Building a foundation, (2) Balancing good and bad credit decisions, (3) Rebuilding damaged credit , (4) Using credit to build personal wealth

III. Section I: Credit Fundamentals (15 mins)

a. Credit defined

b. Interest defined

b.i. Pros/Cons

c. Types of Credit

c.i. Revolving

c.ii. Installment

c.iii. Non-Installment

c.iii.1. Secured

c.iii.2. Unsecured

IV. Understanding Financial Institutions

a. Credit Building V. Non Credit Building Institutions

a.i. Banks and Credit Unions: Defined, & why they are credit building

a.ii. Alternative Finance Services: Defined, & why they are non-credit building

b. What is Predatory Lending?

b.i. Defined

b.ii. Tips to avoid predatory lending

Activity: Fact or Fiction Quiz: Participants will answer a number of questions to decipher whether or not they are aware of the common myths/misconceptions of credit and to be exposed to little known facts about credit.

Section II: Credit Rating: Explored (15mins)

c. The U.S. Credit System Explained

d. Credit Score

d.i. How is it calculated? d.ii. How do everyday decisions impact your credit?

d.iii. What is it used for?

d.iv. What is a FICO score? How is it similar/ different from a credit score?

d.v. Are there other types of credit scores?

e. Credit Report

e.i. What is a credit report?

e.ii. What are the three credit bureaus?

e.iii. What’s included on this report?

e.iv. How to dispute an incorrect item?

f. Racial Credit Score Disparities

V. Section III: Securing your future (15 mins)

a. Tips for establishing and maintain good credit

b. Understanding your credit rights as a consumer

c. Tips for deciphering credit scams

d. Links to a few trustworthy counseling resources

Activity: Self Assessment- Participants write down target Credit Score Goals and the steps they plan to take to achieve that goal

Ask the Expert (15 mins)

d.i. General Questions (not specific to individual cases)

d.i.1. Have people write down questions on a piece of paper, and have the expert answer a few of them

VI. Close (5mins)

a. Thank everyone for their cooperation (including expert)

b. Remind people to complete the evaluation form

c. Ask people to take the folders home/and utilize information

______Notes for Trainer Length: 1 Hour 30 mins Message:

 Strategic use of credit can be beneficial to you

 Credit can help you build wealth or increase debt

 Knowledge= Power

 Reliable resources are available

Learning Objectives: By the End of this Workshop, participants will learn:

 How to feel empowered at every state of the credit spectrum

 Ways to properly assess one’s current financial state

 Better understanding of how credit works

 Ways to use credit to build personal wealth

Points to Stress:

 Know your options

 The NAACP and its partners are advocates

Key Activities/Quizzes:

 Fact of Fiction Quiz on Credit

 Sample Credit Report (group work)

 Self Assessment

Probing Questions

 What were your expectations of this workshop?

 What new information have you learned?

 Why is it important to understand the difference between credit building and non credit building institutions? Materials & Preparation Included in each folder:

 PowerPoint Presentation Printout

 Note pad for notes

 Handouts (Resource information)

 Worksheets

 Workshop Evaluation Form

 Expert ‘s Business Card