Bank manager/ Financial planner, please help?

Hi! How r u all? Well i am in need of a bit of sum assistance.





I am suppose to interview/ask these questions for my economics class. If you are a Bank Manager or Financial Planner, please answer.





1. What are the implications of having either a positive or negative credit history? (Ask for specific examples.)





2. What would constitute a responsible use of credit?





3. What are three (or more) inappropriate uses of credit?





4. When selecting a credit card, what factors should one consider?





________________________________


I am also suppose to get your :


a. Name


b. Company they work for


c. Address


d. Phone number


e. E-mail address (if possible)


(A business card or copy of one will also suffice for this requirement.)








Even if u cant do the last part answering the questions would be really helpful. Thank you tons.

Bank manager/ Financial planner, please help?
I am a Personal Finance Representative at Washington Mutual Bank and I am happy to answer your questions.





The main reason you build your credit is to get the best rate when borrowing money. The largest investment you will make in you life is purchasing you house. With good credit, a 30 year fixed mortgage for $250,000 would be about 5.94%. The total interest paid over the 30 years would be $286,128. Looks like a lot huh? Bad credit would be at around 9.00% and that $474,160 in interest. That is a huge difference.





I think responsible credit is paying your monthly bill every month, not letting your credit card balances go higher than half of your credit limit and have a Debt-to-Income ratio of less than 40% if you do not own a home.





Inappropriate uses of credit is when you borrow funds you have no intension of paying back, using the funds for non-productive uses (e.g. going to Vegas) and borrowing money to give to someone else (if they don’t pay you back, you are up the creek without a paddle).





Credit cards ok. If you have no credit you need to start with a Secured Credit card. This is the only time you need to pay an Annual fee (unless you are in a serious rewards program). A balance transfer option is great. I never go for anything less that 0% for a year. Select one credit card that you will use for all your purchases and pay it back all the time (this should have a cash back option or points program).