Borrowing benchmarks
66 benchmarks entries in the Borrowing area of our Personal Financial Literacy study dataset.
| Code | Benchmark |
|---|---|
| 4-1a | Explain why individuals borrow money and must repay more than they originally received |
| 4-1b | Describe reasons businesses and individuals lend money to others |
| 4-2a | Identify goods and services commonly purchased on credit |
| 4-2b | Discuss reasons why consumers might prefer credit over cash payment |
| 4-3a | Explain why a lender might trust one borrower more than another |
| 4-3b | Discuss why someone may hesitate to lend to a person with a history of non-repayment |
| 8-1a | Identify financial institutions and businesses that provide consumer credit |
| 8-1b | Compare lenders based on the type of credit they offer, interest rates, and fees |
| 8-1c | Explain how market conditions influence interest rates |
| 8-2a | Describe how lenders advertise loan costs to prospective borrowers |
| 8-2b | Calculate APR given annual interest rate and loan amount |
| 8-2c | Investigate how missing or late payments affect introductory low interest rates |
| 8-3a | Describe how higher interest rates and longer loan terms increase a loan’s total cost |
| 8-3b | For a set payment, principal, and term, calculate total interest paid |
| 8-4a | Explain why credit card interest rates are often higher than those on secured loans (e.g., auto loans) |
| 8-4b | Describe ways to minimize interest charges on credit card balances |
| 8-5a | Identify information found in a credit report |
| 8-5b | Discuss how credit history affects borrowing costs |
| 8-6a | Explain why using credit for education or housing can be beneficial |
| 8-6b | Assess benefits and drawbacks of using credit for education or housing versus everyday needs |
| 8-6c | Justify using credit for a specific purchase |
| 8-7a | Identify signs that someone may have too much debt |
| 8-7b | Predict potential consequences of having high debt relative to income |
| 12-1a | Describe how credit card grace periods, interest calculations, and fees affect borrowing costs |
| 12-1b | Compare cost of borrowing $1,000 using different consumer credit options with varying rates and fees |
| 12-2a | Provide examples of unsecured versus secured loans |
| 12-2b | Explain why secured loans carry lower interest rates than unsecured loans |
| 12-2c | Compare outcomes when a borrower defaults on a secured loan (e.g., auto, mortgage) versus an unsecured loan (credit card) |
| 12-3a | Identify collateral requirements for a mortgage loan |
| 12-3b | Differentiate between adjustable-rate and fixed-rate mortgages |
| 12-3c | Compare monthly mortgage payments for loans of varying terms, amounts, and interest rates |
| 12-4a | Describe funding sources for postsecondary education |
| 12-4b | Explain FAFSA’s role in applying for college financial aid |
| 12-4c | Identify scholarships and grants for which one may qualify |
| 12-4d | Estimate how attending a community college for two years before transferring can reduce total education costs and debt |
| 12-5a | Compare federal and private student loans by interest rates, repayment rules, and other features |
| 12-5b | Describe the steps for applying for a student loan |
| 12-5c | Estimate total interest on various student loans based on rates and repayment schedules |
| 12-5d | Predict consequences of deferring student loan payments |
| 12-6a | Provide examples of loans requiring a down payment |
| 12-6b | Given a home price, estimate required down payment percentage |
| 12-6c | For a given loan amount, compare monthly payments with 10% versus 20% down payment |
| 12-6d | Explain how a down payment makes a borrower more creditworthy and incentivizes repayment |
| 12-7a | Identify major credit bureaus that compile and provide consumer credit reports |
| 12-7b | Discuss how information in a credit report informs lender decisions |
| 12-7c | Explain how and why to obtain a free credit report |
| 12-7d | Outline steps to dispute incorrect information on a credit report |
| 12-8a | Identify key factors included in credit score calculations |
| 12-8b | Explain how a credit score affects borrowing costs and credit access |
| 12-8c | Propose methods to improve a credit score |
| 12-9a | Explain how landlords, employers, and insurers use credit reports and scores in decision making |
| 12-9b | Provide examples of benefits from maintaining a good credit score |
| 12-9c | Compare effects of soft versus hard credit inquiries on credit scores |
| 12-10a | Describe financial and personal consequences of failing to repay a loan |
| 12-10b | Identify resources for help with debt management |
| 12-10c | Create a repayment plan for someone struggling with debt |
| 12-10d | Compare costs and benefits of for-profit versus nonprofit credit counseling |
| 12-11a | Describe the purpose and function of bankruptcy laws |
| 12-11b | Investigate how bankruptcy affects assets, employability, and future credit |
| 12-11c | Compare outcomes of liquidation versus reorganization bankruptcy |
| 12-12a | Explain why laws require transparent information about credit cards and loans before borrowing |
| 12-12b | Discuss importance of protecting borrowers from discriminatory or abusive practices |
| 12-12c | Research credible, up-to-date sources on credit rights and responsibilities |
| 12-13a | Identify products and services classified as alternative financial services |
| 12-13b | Compare costs and benefits of alternative financial services versus traditional banking |
| 12-13c | Explain how reliance on payday loans can lead to a cycle of debt |
More Personal Financial Literacy areas
About this study catalogue
This reference uses DecA(I)de's bundled deca-pis.json and
decaidevocab.json study datasets. Counts are entries, not unique
indicators or terms; the same item can appear in multiple groups. Code punctuation
and display formatting are normalized.
Personal Financial Literacy uses benchmark-style codes such as 4-1a,
distinct from business performance-indicator codes such as BL:003.
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