1. Mr. Ammar family wants to refinance their house, but before they do this they want to see if there is any way to improve their credit score to lower their rate. They have a savings of $5,000. Their total monthly income is around $3,000 after taxes. Mr. Ammar is thinking about quitting his job in order to finish his bachelors degree. This will reduce their monthly income substantially. They also have several department store credit cards that have an outstanding balance of $600. What are some things they could do to increase their credit score?

[Always remember: in writing your argument, start with introduction, explanation, and followed by concluding remark]

2. For each of the following, explain whether this action will have positive effect, negative effect, or no effect on your credit score and why?

i. Paying off some of your outstanding debt

ii. Taking out a new credit card

iii. Setting up automatic bill pay

iv. Buying a house

v. Checking your full credit history online

vi. Increasing your maximum credit available

[Always remember: in writing your argument, start with introduction, explanation, and followed by concluding remark]