Credit Card Essay Example

Assignment 5: Credit and Loans 1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? If I am borrowing money and paying interest, I would prefer an interest rate that compounds annually because annually would cost you less than quarterly.
2. a. What is the total balance of Jessie Robinson's real estate account? The total balance of Jessie Robinson’s real estate account is 19,000
b. What is the total balance of Jessie Robinson's revolving account? The total balance of Jessie Robinson's revolving account is 500
c. Has Jessie Robinson ever applied for bankruptcy? No, Jessie Robinson has never applied for bankruptcy.
d. How many creditors have made inquiries about Jessie Robinson's credit? 3 creditors have made inquiries about Jessie Robinson's credit.
e. Do you think Jessie Robinson usually pays bills on time and in full? Yes, I think Jessie Robinson usually pay bills on time and in full.
f. Do you think Jessie Robinson's credit score would be great, normal, or poor? Why? I think Jessie Robinson’s credit score is great because she paid bills on time, 12 month history - paid in full.
3. Describe a real or made up but realistic situation in which you would want to use installment credit.
A realistic situation in which I would want to use installment credit is when buying a house.
4. Describe a real or made up but realistic situation in which you would want to use noninstallment credit. A realistic situation in which I would want to use noninstallment credit is when buying pairs of shoes
5. Describe a real or made up but realistic situation in which you would want to use revolving credit.
A realistic situation in which I would want to use revolving credit is when paying for student loans.
6. If you had no credit history yet but wanted to establish one, describe what you could do in order to establish a credit history.
If I had no