Conrad and Ingrid Morales are a newly married couple in their mid-20s. Conrad is a senior at a state university and expects to graduate in the summer of 2015. Ingrid graduated last spring with a degree in marketing and recently started working as a sales rep for the Momentum Systems Corporation. She supports both of them on her monthly salary of $4,250 after taxes. The Morales 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 Conrad nor Ingrid knows how to apply for a credit card, they approach you for help.

Critical Thinking Questions      
 
1. Advise the Morales on how to fill out a credit application.
 
2. Explain to them the procedure that 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 Morales on the “correct” use of their card? What would you tell them about building a strong credit record?