Starting With the Truth
We opened Session 4 by acknowledging something most financial education skips over: the credit system in the United States was not designed with communities of color in mind. Redlining, discriminatory lending, and systemic exclusion from banking left generational marks on the credit profiles of Black, Hispanic, and first-generation households. Understanding that history is essential to understanding how to move within the system today.
"Knowing the system was rigged helps me stop blaming my family for not having good credit. Now I can be the one who breaks that cycle."
How Credit Actually Works
We broke down the five factors that make up a FICO credit score: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Students immediately started calculating what this meant for their own situations and for their families.
Building Credit From Zero
The second half of the session was practical: how do you build credit when you have none? We covered secured credit cards, becoming an authorized user, credit-builder loans, and the importance of never missing a payment, even the minimum. Students left with a concrete three-step starter plan they could begin immediately.
What's Next
Session 5 goes deep on debt: student loans, credit cards, and how interest compounds over time. We'll run real numbers on what different debt amounts actually cost students over a repayment window.