Felipe and Lucia Ramirez are a newly married couple in their mid-20s. Felipe is a senior at a state university and expects to graduate in the summer 2017. Lucia graduated last spring with a degree in marketing and recently started working as a sales rep for the Fulcrum Systems Corporation. She supports both of them on her monthly salary of $4,250 after taxes. The Ramirez family 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 Felipe nor Lucia has never applied for a credit card, they approach you for help.

1) Advise the couple 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 kinds of advice would you offer the Ramirez family on the best use of their credit? What would you teak them about building a strong credit record?