Finance_Assignment2

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School

Northeastern University *

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Course

1209

Subject

Finance

Date

Apr 3, 2024

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docx

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2

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Credit Card Analysis A. What additional information do you need in order to make a decision whether to accept this? List specific characteristics you need to consider and why you think they are important. - In order to make a well-informed decision, it is important to take into account the following important factors: 1. Find whether the credit card comes with an annual fee, as this expense may have an impact on the card's overall value. 2. Whether or not the credit card provides a rewards program with cash back, points, and redemption options. 3. Finding what’s the minimum credit score requirement to get it, will help me decide if it's a good fit. 4. Understand their credit limit increase as it can play a huge role in my future financial planning. B. What factor(s) would cause you to accept this offer? What factor(s) would cause you to decline this offer? Be specific and thorough in your response. - The factors that will push me to accept this offer are: 1. If the credit limit meets my needs and allows me to easily manage my expenses. 2. No annual fee. 3. They’re offering great rewards such as points and cash back. - The factors that will push to decline this offer are: 1. If the annual fee outweight the benefits. 2. If the rewards program doesn't match my purchasing habits or has few redemption options. 3. Tight policies on credit limit increase.
C. If you accept the offer, how will you manage your credit card debt? If you reject the offer, what are your reasons for doing so? - Making a monthly budget would help me keep track of my spending and make sure I have enough money to pay it off on time. Setting up a payment reminder would help me avoid forgetting to pay and getting charged late fees. I would try to keep my CC usage low by not using all of my available credit. I would carefully use the rewards I earn from the CC's points program to get the most out of them.
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