Question

The chart describes how four of Susan's friends handle their money.Which person is most creditworthy?a. Nancyb. Sylviac. Fionad. Uli

Answer 1

To determine the most creditworthy individual, we analyze their financial behavior, including timely payments and debt management. The chart in question is not provided, so a definitive answer can't be given without more information.

Step-by-step explanation:

To determine who is the most creditworthy among Susan's friends, we need to evaluate their financial behaviors, such as payment history, debt levels, types of credit used, length of credit history, and any new credit accounts. Usually, the most creditworthy person pays bills on time, keeps debt low relative to their credit limits, maintains a mix of credit account types, has a long history of using credit responsibly, and does not open many new accounts at once.

Without the specific details presented in the chart, we cannot definitively answer which person is most creditworthy. However, if we had that information, we would look for the friend with the most responsible financial practices outlined above.

Remember, maintaining good credit is essential not only for receiving loans with favorable terms but also can influence other aspects of life, such as renting an apartment and sometimes even getting a job.

Answer 2

The correct option is C.

Fiona appears to be the most creditworthy. She is the only one who consistently pays more than the minimum amount due on her bills, which is a positive behavior in credit scoring models. Paying more than the minimum indicates a capacity to handle and manage debt effectively, which is a key component of creditworthiness.

To determine who is the most creditworthy among Susan's friends based on the descriptions provided in the chart, let's analyze the spending and payment habits of each person:

1. Sylvia: She uses her entire paycheck for food, necessities, and the minimum payments on her bills. Then she buys new clothes and pays with a credit card. This behavior suggests that she may be accumulating credit card debt by not paying off her balance in full.

2. Nancy: She also spends her whole paycheck on necessities and then takes trips, which she pays for by adding to a personal loan with her credit union. This indicates that she is not only using all of her available cash but also increasing her debt.

3. Fiona: She buys food and necessities and pays more than the minimum due on her bills each month. She socializes using the leftover money in her checking account. Fiona's habit of paying more than the minimum on her bills indicates a responsible approach to debt, which improves her creditworthiness. She also uses surplus funds for leisure, which means she is not accruing more debt for these activities.

4. Uli: She buys necessities and pays the minimum amount on her bills each month. She goes out with friends using the leftover money in her savings. Like Sylvia, Uli only pays the minimum on her bills, but unlike Sylvia, she uses savings rather than credit for her extra expenses. This suggests she might have a better handle on her spending compared to Sylvia, but paying only the minimum can still be a sign of lower creditworthiness.

Based on the information provided, The answer is Fiona.

The complete question is here:

The chart describes how four of Susan's friends handle their money. Which person is most creditworthy?

A. Nancy

B. Sylvia

C. Fiona

D. Uli.