A. Which of the following as represented are components of the 5 C's of credit, and what do they mean? Which ones of the 5 are not shown? (6 points) I. Collateral and Capacity II. Conditions, Capital and Consideration III. Collateral and Credit Score IV. Character and Conditions V. Consistency and Capacity

B. Below are the steps to consider when looking at your credit statement: I. make sure to confirm payments you've made II. check the due date for payment III. review charges on the card Please explain why each of these steps are important, what errors could occur by not following these steps, and what, if any, additional steps might be employed when considering credit statements. (6 points)

C. How much could the Simpsons receive on a home equity line of credit on their home with a market value of $245,000 and their equity of $80,000 with having an outstanding mortgage of $145,000 (consider 80% LTV) ? Please show all calculations. Please discuss the benefits and risks of a home equity line of credit. (6 points)

D. In discussing how to use credit wisely, Todd mentions the importance of using credit wisely, by knowing your debt safety ratio, not closing accounts once opened, and avoiding the chasing of credit deals. Why are each of these important, what does each specifically mean, and are there any other areas to be aware of in a wise usage of credit? (6 points)

E. Describe ways to improve your FICO score. What is a FICO score? What is a good score? Who are the credit reporting agencies? (6 points)

I look forward to your responses, and input to these questions, in a readable, and professional presentation, to include restating the questions, as addressed.