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FICO Credit Score Spectrum MicroSim

Run the FICO Credit Score Spectrum MicroSim Edit FICO Credit Score Spectrum MicroSim

Sample iframe

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<iframe src="https://dmccreary.github.io/personal-finance/sims/fico-score-spectrum/main.html" height="300px" scrolling="no"></iframe>

About This MicroSim

This visualization displays the FICO credit score spectrum, the most widely used credit scoring system in the United States. The spectrum ranges from 300 to 850, with color-coded categories showing:

  • Poor (300-579): High risk, may have difficulty getting credit
  • Fair (580-669): Below average, higher interest rates likely
  • Good (670-739): Average, acceptable to most lenders
  • Very Good (740-799): Above average, better than most consumers
  • Exceptional (800-850): Excellent, best rates and terms available

How Credit Scores Affect You

Your credit score impacts: - Interest rates on loans and credit cards - Approval for apartments and housing - Insurance premiums - Employment opportunities - Security deposits on utilities

Lesson Plan

Learning Objectives

After completing this activity, students will be able to:

  1. Identify the five FICO score categories and their ranges
  2. Explain how credit scores affect financial opportunities
  3. Analyze factors that influence credit scores
  4. Apply strategies to build and maintain good credit

Target Audience

High school students and young adults learning about credit.

Prerequisites

  • Basic understanding of borrowing and lending
  • Familiarity with credit cards and loans

Activities

  1. Exploration: Identify which score category applies to different financial scenarios
  2. Research: Find the average interest rate difference between "Fair" and "Excellent" credit
  3. Discussion: Debate whether credit scores are a fair system

Assessment

  • Name the five FICO score categories with their number ranges
  • Calculate the interest savings of good vs poor credit on a $20,000 car loan
  • List five factors that affect credit scores

References

  1. MyFICO - Understanding FICO Scores - Official FICO education
  2. Consumer Financial Protection Bureau - Credit Scores - Government resource
  3. Experian - What Is a Good Credit Score? - Credit bureau explanation