Answer: 3-6 months

Questions:

• What questions would you ask a stranger who wanted to borrow money from you? 
  • Those questions match up well with what is captured in a credit report. 
• In your own words, what do you think a credit history is? 
• Why do you think it might be important?
• Who might be interested in your credit history? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Experian): 

According to Experian, one of the major credit bureaus, it takes between three and six months of regular credit activity for your file to become thick enough that a credit score can be calculated.

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Here's a great pair of activities that bring credit scores to life for students and help them understand the consequences of having poor credit management habits. 

• Interactive: FICO Credit Scores
• Calculate: Impact of Credit Scores on Loans

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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