Question

Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That downpayment will lower the monthly payment so she can easily afford a new truck. She has been saving for18 months and has half the money. It will take her about the same amount of time to save up the otherhalf. Is this a good use of credit?
(1 point)
Yes, borrowing money is always good for business.
No, a smaller down payment would get her a new truck today.
Yes, it is a major purchase and Juanita has figured out what she can afford.
No, Juanita should save for the full price of the truck no matter how long it takes.
A)
Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That downpayment will lower the monthly payment so she can easily afford a new truck. She has been saving for18 months and has half the money. It will take her about the same amount of time to save up the otherhalf. Does she need to be concerned about her credit score now even though she will not be getting theloan for at least a year?
(1 point)
Yes, how she handles credit today will shape her credit score.
No, credit scores are only used by businesses and their clients.
Yes, every purchase she makes will show up on her credit score.
No, no one will be checking until she actually takes out the loan.

Answer 1

1) Yes — it is a major purchase and Juanita has figured out what she can afford.
2) Yes — how she handles credit now will affect her credit score later.