How to Get and Keep Credit

User Generated

Ybalqnyr

Business Finance

Description

Six more simple questions nothing fancy.

Answer the following questions. Submit in the text box below or submit as a word or document.

  1. How can a consumer develop a credit history?
  2. What is an annual percentage rate? Why is it important?
  3. What are the three Cs of credit?
  4. Which type of loan usually carries a lower interest rate—a secured or an unsecuredm loan? Why?
  5. What is the maximum percentage of your income that you should allocate to credit payments?
  6. What is garnishment of wages?

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Explanation & Answer

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How to Get and Keep Credit
Q1. How can a consumer develop a credit history?
Notably, a credit history is a record of a customer's capability to pay debts as well as the ability
to show responsibility in paying loans. A customer's credit history entails details like types and
number of accounts, amount owned, a number of current credit inquiries, and if the bills are paid
on due time. Therefore, in the process of building good credits history, a consumer can;
➢ Obtain a cosigner- worth a note, for young adults at the age of eighteen and above, a
person can apply for a credit card with a guardian or a parent as the cosigner. Equally
important, it is imperative for a person to manage the credit card account responsibly and
ensure the balance is paid on time on a monthly basis.
➢ Get a small amount of loan from a depository organization- a person can obtain a small
loan for a product that one can manage to repay. N...


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