Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 6, Problem 1FPE
Summary Introduction
To discuss: A plan for Person H that can be used to establish a strong credit history and the impact of student loan on the credit history.
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Establish a credit history. After graduating from college last fall, Holly Baker took a job as a consumer credit analyst at a local bank. From her work reviewing credit applications, she realizes that she should begin establishing her own credit history. Describe for Holly several steps that she could take to begin building a strong credit record. Does the fact that she took out a student loan for her college education help or hurt her credit record?
Should this person open a credit card account? If they do decide to open the new credit card account, what’s one thing this individual should monitor?
Most young adults form their opinions about credit and debt from what they see in their parent's experiences. How has your perception of carrying credit card debt, student loans, and other borrowing changed as a result of reading chapters 6 and 7?
Chapter 6 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Many of us apply the time value of money in our personal lives – for example when we invest dollars in a young child’s bank account earmarked for his or her eventual college education. Share an explanation of the time value of money in your own words. What criteria do accountants use to decide whether to use present or future values in accounting statements?arrow_forwardOur credit reports and credit scores have important consequence in our lives. Each of those examples IS NOT affected by your credit? Opening an IRA (Individual Retirement Account) Applying for a mortgage Renting a new place Purchasing auto insurancearrow_forwardCase Study: You have been appointed as a loans officer for the local state bank. One day a person walks into the bank looking for loan to buy a new car. List items about that individual that you should find out before making a decision whether or not to approve the loan. Note: Provide reasons for your answer at each step. THE ENDarrow_forward
- You have been appointed as a loans officer for the local state bank. One day a person walks intothe bank looking for loan to buy a new car. List items about that individual that you should findout before making a decision whether or not to approve the loan.arrow_forwardObtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Why is your credit application approved or denied? ооооо Good news-your credit application was approved. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. оооо APPROVED Physical appearance Character Political affiliation Capacity Religion 0000 MEGACREDIT Capital Extra 199 SIE TEL Your friend recently applied for credit and was turned down. Why was your friend probably denied credit? Check all that apply. History of personal bankruptcy FICO score greater than 850 Absence of checking, savings, or other…arrow_forwardA friend of yours is graduating college next month. He has had a credit card and student loans for the past few years, but he’s never bothered to check his credit report. 1)Why is it vital that your friend reviews his credit report? How soon would you recommend he does so and why? 2) Which sections of information in his credit report should he pay particular attention to given his situation?arrow_forward
- Prepare a service blueprint for each of these banking transactions: Make a savings deposit using a teller. Apply for a home equity loan.arrow_forwardImagine you're trying to select a new credit card. Identify 4 attributes of a credit card you would consider in making your selection. make a brief description of each attribute and how you would use it to select a credit card. Where would you file a complaint if the issuer of the credit card you select later treats you unfairly?arrow_forwardSuppose you are working in a bank that encourages customers to save money for their future. Your bank manager requested you to form a team and formulate a slogan to be used for this savings campaign. Write a short phrase or slogan to persuade people to open a savings account in the bank where you work.arrow_forward
- Jane, an ambitious entrepreneur, is looking to expand her successful start-up business after one year of operation. To secure funds for this venture, she decides to approach a bank for a loan. However, the bank requests financial statements to assess the viability of her business and its ability to repay the loan. Challenge: Jane is unfamiliar with the specific financial reports required and their significance in the loan application process. She seeks guidance on which reports are essential and why they play a crucial role in demonstrating her business's financial health. Please provide a memo for her and discuss her challenge with recommendation." 11arrow_forwardShould this person open a credit card account? If they do decide to open the new credit card account, what’s one thing this individual should monitor or use caution?arrow_forwardJesse has a good job and pays off his one credit card every month. He was surprised that when he applied for a loan to buy a car, he was rejected. What are the steps that he should take to check his credit report for errors?How can he resolve any errors that he discovers?arrow_forward
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