Scenario 1: you want to purchase a new vehicle and you have your heart set on a brand-new SUV. you take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees. Does your credit score go up or down? Why does it go up or down? If your score goes down, how can you fix it?

Scenario 1: you want to purchase a new vehicle and you have your heart set on a brand-new SUV. you take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees. Does your credit score go up or down? Why does it go up or down? If your score goes down, how can you fix it?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 7FPC

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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Transcribed Image Text:Scenario 1: you want to purchase a new vehicle and you have your heart set on a brand-new SUV. you take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees. Does your credit score go up or down? Why does it go up or down? If your score goes down, how can you fix it?

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