Ramon and Maria Lopez are a newly married couple in their mid-20s. Ramon is a senior at a state university and expects to graduate in the summer of 2011. Maria graduated last spring with a degree in marketing and recently started working as a sales rep for the Kinetic Systems Corporation. She supports both of them on her monthly salary of $3,500 after taxes. The Lopezes currently pay all their expenses by cash or check. They would, however, like to use a bank credit card for some of their transactions. Because neither Ramon nor Maria knows how to apply for a credit card, they approach you for help. 

Critical Thinking Questions

1. Advise the Lopezes on how to fill out a credit application. 

2. Explain to them the procedure the bank will probably follow in processing their application. 

3. Tell them about credit scoring and how the bank will arrive at a credit decision. 

4. What kind of advice would you offer the Lopezes on the “correct” use of their card? What would you tell them about building a strong credit record?