Expert: Shane - 8/5/2009

Question
I'm currently taking a economics class online, and I have been assigned to interview a financial planner. I have four very simply, quick question. I'll be greatly appreciate it if you answer the following questions:

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?

Following these questions, I have been asked to ask these information:
a. Name
b. Company they work for
c. Address
d. Phone number
e. E-mail address (if possible)"


Answer
1. lets take the purchasing of a car as an example

person a has stellar credit, they will get financed at a low rate

person b has bad credit, they may get financed but it will be a very very high rate and they will end up owing more than what the car is worth.

2. Responsible use of a credit card is never spending more than you can afford to pay back in the near future.

3. a. purchasing frivalous items b. paying rent with your credit card c. allowing others to use your credit card.

4. you need to consider APR's if they change, is it a fixed rate, and are there any hidden fees.

I cannot answer specific information about myself, but you could put that I am Shane with all experts working at a large bank in Michigan.