B1 – Understanding Credit Scores

Description

A B1-level ESL lesson on understanding credit scores, perfect for learners exploring personal finance.

Students build essential financial vocabulary and listening skills through an engaging explainer video and interactive tasks. The lesson includes a visual breakdown of credit score factors, comprehension checks, and a structured role-play activity where learners take on the roles of bank officers and loan applicants. Ideal for learners who want practical language for real-world money matters.

Warmer: What do you know about credit?

Start the lesson by chatting about what students already know about credit and credit scores. Ask questions like, What do you think a credit score is? and Why do you think having a good credit score is important? This is a great way to get everyone sharing their ideas and connecting to what they already know. Use words like loan, credit history, and payments to naturally introduce some key terms. After that, check if their ideas are correct by looking at a definition of a credit score from Collins Dictionary. Shift the conversation to why credit scores matter and how they can impact someone’s chances of getting a loan or a credit card.

Listening: What is a Credit Score?

Once they’ve got the main idea down, it’s time to dig a little deeper. Start by sharing a pie chart that breaks down the five things that can affect credit scores (in the USA!). Then, have students check out a video called What is a Credit Score? from Mashable. While watching, they should jot down the missing factors that contribute to credit scores. To wrap this up and make sure everyone understands, match each factor with its definition.

The video is pretty straightforward because of the graphics, which definitely helps. But to make sure everyone really gets the info, have them watch it again and focus on some true or false statements. After they finish, review the answers together and chat about each statement. It’s a good idea to get them to discuss their thoughts with a partner before you go over the answers as a group.

Role-Play: Applying for a Loan

This lesson wouldn’t feel complete without using the key credit score vocabulary in context. First up, students read through some common questions they might hear at a loan office. Their job is to match those questions with the right answers. This will help them get a better grip on things for the next part of the role-play. Since money and credit scores can be a bit touchy, I thought it would be best to create two fictional characters, John Smith and María Gonzalez. One student will take on the role of a loan officer, asking about the other student’s payment history and credit utilization, and then they’ll dish out a final credit score and decide if they’ll approve the loan or not. After that swap the roles!