Present Value of an Annuity Sandra and Regina earn the same salary. However, Regina has been far more financially responsible. She pays her bills on time and pays off her credit card debt quickly. Sandra had been less financially responsible. She often buys too many shoes and has allowed her credit card balance to balloon. If she is short on cash for a month, she simply decides to not even pay the minimum balance due on her credit card. Now they both are looking to buy apartments. Regina decides she can afford to make $3,500 payments, but Sandra can only make $1,500 payments and pay off her credit card debt, too. Regina qualifies for a 6 percent, 30-year mortgage, but because of her bad credit rating Sandra will be charged 7.5 percent on a 30-year mortgage. Both will put 20 percent down. How is Sandra's bad credit going to impact her apartment search?