Question

Gwen took out a loan to buy her car. She made payments every month for five years, without ever missing a payment or making a late payment. This is what that section of her credit report looks like:

NOTE: The account number has been redacted here.



INSTALLMENT ACCOUNTS

G = paid on time

X = no payment made

30/60/90 = number of days late

Capital City Financing

Account#: XXXXXX

11296 Peter Burnett Blvd, Sacramento, CA 95814


Date Opened: 06/22/2005

Last Payment Date: 06/15/2010

Responsibility: Individual

Last Payment Amount: $242.00

Type: Automobile

High Balance: $12,145

Status: Closed

Terms: $242 per month for 60 months


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2010

G

G

G

G

G

G













2009

G

G

G

G

G

G

G

G

G

G

G

G

2008

G

G

G

X

G

G

G

G

G

G

G

G

2007

G

G

G

G

G

G

G

G

G

G

G

G

2005













G

G

G

G

G

G

What should Gwen do?

(1 point)
Responses

She should get the erroneous missed payment corrected.
She should get the erroneous missed payment corrected.

She should get a better rate the next time she gets a car loan
She should get a better rate the next time she gets a car loan

She should be more careful about payments the next time she gets a car loan.
She should be more careful about payments the next time she gets a car loan.

She should get a better car next time she decides to purchase.

Answer 1

Gwen should get the erroneous missed payment corrected.

The credit report indicates that she made all her payments on time, yet there is a record showing "X" for a missed payment in 2008. If this is indeed an error, it can negatively impact her credit score and future lending opportunities. Therefore, correcting this mistake should be her priority.