Q 5.37: Karen is planning to purchase an apartment in six months when her current lease expires. She is looking at ways to improve her credit score. Which strategy will help her toward this goal? Increase limits on existing credit accounts if a new application is not required. B Close existing revolving credit accounts that she does not use. c Spread monthly purchase charges over different existing credit cards. D Open a new installment loan since she just paid off her auto loan. Q5.37: Jack is a bright young investment analyst looking to attend a top private graduate business school in the evenings. His employer is willing to pay his entire tuition for up to two classes a semester after he completes the course and submits his grades. Being the crafty type, he devises a strategy to pay for his tuition on a rewards credit card immediately after a billing cycle ends to gain close to a two-month grace period, which he hopes to use to subsidize the remaining semester's interest cost with a cash back reward. He has a stellar 810 credit score. What could be an issue with his strategy? A Rewards cards typically do not offer a grace period. B Some vendors may charge a convenience fee of 2 - 4% for paying large bills with a credit card. Rewards cards typically carry a higher interest rate up to 29%. D Rewards cards typically payout less points for higher purchase amounts