Assignment 5: Credit and Loans
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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)
2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below.
a. What is the total balance of Jessie Robinsons real estate account? (0.5 points)
b. What is the total balance of Jessie Robinsons revolving account? (0.5 points)
c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points)
d. How many creditors have made inquiries about Jessie Robinsons credit? (0.5 points)
e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points)
f. Do you think Jessie Robinsons credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points)
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)
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)
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)
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. (3-6 sentences. 2.0 points)
7. Describe two things you can do to make sure you use credit responsibly. Explain why these things are important. (2-4 sentences. 2.0 points)
8. If you were old enough to get a credit card but unable to get one because you didnt have enough of a credit history, which of the alternate options for establishing credit would you prefer to use? Why? (2-4 sentences. 1.0 points)
9. Imagine that you have a friend who is struggling financially and is trying to choose a credit counseling service. Visit the FTC website here
10. Visit the website for a large bank or credit card company, and learn about a type of credit card being offered by the company. Describe at least four features of the card and where you got this information. (3-6 sentences. 2.0 points)
11. Visit the website for a second large bank or credit card company, and learn about a similar type of credit card being offered by this company. Describe at least two differences between this credit card offer and the one from question 10 above. Which offer would you be more likely to choose? Why? (3-6 sentences. 2.0 points)
12. Describe a real or made up but realistic example of a time when you might apply for a loan. (2-4 sentences. 1.0 points)
13. In your Section_5 folder, navigate to and open the Example_FAFSA. Complete the steps below to save a copy of the file with your initials in your Section_5 folder. TIP: The FAFSA is the Free Application for Federal Student Aid. This application is used by many students to get federal funding for their college education.
a. Click the File menu, and then Click Save a Copy.
b. If a Save a Copy dialog box appears, click Save a Copy.
c. Make sure the Save in drop-down list is set to your Section_5