Question
Suppose your friends, Mary and John, received their first credit cards with identical features. Mary uses her card extensively to make purchases, always paying the
Suppose your friends, Mary and John, received their first credit cards with identical features. Mary uses her card extensively to make purchases, always paying the full balance in a timely manner so that she incurs no interest cost. John pays for everything in cash, reserving the credit card only for an emergency that never happens.After two years, your friends apply for a new credit card. What are some of the reasons why Mary might be offered a new card at a much lower interest rate than John, despite the fact that they have similar jobs and make the same amount of money? Refer toUnderstanding Credit Utilizationand5 Factors That Determine Your Credit Scoreto learn more.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started