Trying to catch break. Your friend Jared is dismayed that hekeeps having his loans rejected. He asks you to review variousparts of this Criteria of Credibility, starting with his creditscores and report. Q1(a). “I have a proven track record for beingable to obtain credit,” Jared notes. “For example, I have creditcards with combined limits of just over $60,000. Surely that shouldgive me credibility by demonstrating that others are willing tolend to me! I’ve also proven that I can manage my payments bykeeping a balance of around $58,000 - the interest on which I payon time each and every month.” What two specific parts of Jared’ssituation above are likely the reason lenders are worried? Bespecific and explain the implications of what you’ve noted. Q1(b).You find yourself with Jared shopping for appliances at a localhome center. A salesperson mentions that Jared can receive a zeropercent loan on an appliance package if he opens up a store creditcard. Stressing his financial savvy, Jared notes that he recentlynegotiated the purchase of his car, his computer, and his bigscreen TV all with similar zero percent interest rate credit cardaccounts he opened for each purchase. What specific component ofJared’s credit report is he inadvertently hurting? Explain thesignificance of his actions relative to that component and includeyour reasoning. Q1(c). In rejecting his most recent loan request, alender mentioned that Jared’s lack of experience in real estateinvesting concerned the loan committee. “I can’t get a loan unlessI have experience - but I can’t get experience unless I get a loanfirst!” Jared laments. What are three ways for Jared to overcomethis (very common) beginner’s challenge?