W7 Lecture \"Case Study\" w7 video Lecture \"Balance Sheets and Income Statement
ID: 405925 • Letter: W
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W7 Lecture "Case Study" w7 video Lecture "Balance Sheets and Income Statements" W7 Discussion "Consumer Credit" Consumer Credit Our discussion for this week looks deceptively simple but it is really complex. You have a young friend who has never had credit. This person does not really want credit and is doing fine paying cash for everything However, there is a problem your fiend wants to get a home mortgage in two years Devise a strategy for your friend of sensibly building consumer credit for a mortgage lender to evaluate Please respond to the initial question by day 5 and be sure to post two additional times to peers andlor instructor by day i by day 5 should be 75 to 150 words, but may go longer depending on the topic. If you use any source outside of your own should reference that source. Include solid grammar, punctuation, sentence structure, and spelling. Maximum Grading CriteriaExplanation / Answer
It is an established fact that to avail a home mortgage, one must have a decent credit score as a decent credit score represents how regular you are in paying your loans.
But, to have a credit score, one must have a credit to pay. It will generally take about two years to build a “decent” credit score. The first step to building credit is to open an account that reports the payment history to the credit bureaus.
Examples of accounts that report to credit bureaus include major credit cards (Visa, Amex), store credit cards (Target, GAP) and the like.
The easiest way to build credit for the first time is to open a loan account with a co-signer who already has good credit. A co-signer is simply someone who agrees to be responsible for the loan if you stop paying your bills for any reason. In most cases, a bank will approve a loan for somebody with no credit history if there is a creditworthy co-signer on the application.
These are some of the methods which can be used to build a decent credit score by paying bills on time.
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