1.Most people believe that using a credit card for every single purchase is dangerous. Others argue that if it is paid off each month, this is actually a sound cash management practice. Please explain how this can be an acceptable practice and not as dangerous as it seems. What are the advantages of doing this?

2. Jack has $4,000 in available credit and owes $3,000. Jill has $25,000 in available credit and owes $5,000. They both have the same income and both pay their bills on time. They are not married (both are single). With all else being equal between them, which has the highest FICO score? Support your answer with the appropriate calculation. Why?