personal finance 5

Topics: Credit card, Credit, Credit history, Personal finance, Credit score, Credit rating / Pages: 4 (1043 words) / Published: Dec 8th, 2014
1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points)
Annually would cost you less than quarterly. I would go what will cost the cheapest. 2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. N/A a. What is the total balance of Jessie Robinson 's real estate account? (0.5 points) N/A b. What is the total balance of Jessie Robinson 's revolving account? (0.5 points) N/A c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points)N/A d. How many creditors have made inquiries about Jessie Robinson 's credit? (0.5 points) N/A e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) N/A f. Do you think Jessie Robinson 's credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points) N/A 3.Describe a real or made up but realistic situation in which you would want to use installment credit. (2-4 sentences. 1.0 points)
I would use an installment credit plan for home construction. That way I can take care of it slowly but surely. 4. Describe a real or made up but realistic situation in which you would want to use noninstallment credit. (2-4 sentences. 1.0 points)
I would use an non-installment credit plan when I had all the money up front. For something that would be an hassle to pay over time, like if your were in an unsteady job. 5. Describe a real or made up but realistic situation in which you would want to use revolving credit. (2-4 sentences. 1.0 points)
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. I would not use something that I could end up in debt by not paying attention to something. 6. If you had no credit history yet but wanted to establish one, describe

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