YL CLE_10 23_24: Assignment - Credit Scenarios

Assignment - Credit Scenarios

Remember the 8 steps that will help you make good financial decisions:

Put yourself in a calm state. Decisions made from fear or worry are rarely sound. ...
Gather all your information. ...
Clearly state your goals. ...
Research your options. ...
Weigh the potential outcomes. ...
Sleep on it. ...
Make a decision and act on it! ...
Evaluate your results.

Using information gained from this unit, respond to the following scenarios.

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 payment and incur late fees.

How would you use the decision making steps in this scenario?

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 2

Mark and Ryan just moved into their first apartment together and they want to buy a flat screen TV for the living room. They both work but between college tuition, books and rent their funds are running low. Mark decides to take advantage of a financing offer from a local electronics store and buys the TV on a line of credit.

How would Mark and Ryan use the decision making steps in this scenario?

Is this a good or bad debt move? Why?

Scenario 3

Nora has heard that opening a lot of credit card accounts is a good way to build credit. She currently has five cards, but is sometimes forgetful in paying her bills on time and usually has a balance on each card. Her favourite store is offering a $50 coupon on her next purchase, with the promise of more coupons in the future, if she opens a credit card. She decides to open the store credit card to get the discounts.

How would Nora use the decision making steps in this scenario?

Is this a good or bad debt move? Why

Scenario 4

You just got the keys to your first apartment. You also have a new credit card with a $4000 limit and you use it to furnish your new place. Before you know it, you’ve bought a TV, a couch and a dining room table When you get the credit bill, you realize you’ve spend your full credit limit of $4000.

How would you use the decision making steps in this scenario?

Does your credit score go up or down?

Why does it go up or down?

Was this a good decision? Why or why not?

Submission

Upload your assignment to your teacher for marking.

Your assignment will be graded using the following rubric.

Apply Decision Making Process to a Scenario	Applies the decision-making process to scenarios. 4 points	Applies the decision-making process but missed some critical steps. 3 points		Applies the decision-making process but only at a basic level 2 points	Does not apply the decision-making process. 1 point	No decision made. 0 point
Organization & Logical Approach to the Scenario	Provides thoughtful, logical response to the scenarios. 4 points	Satisfactorily completed but lacks logic. 3 points		Response lacks focus or demonstrates confused or conflicting thinking. 2 points	Provides unclear response to scenario or lacks a response. 1 point	Provide no response. 0 point
Quality of Evaluation to Scenario.	Response is highly persuasive and convincing. 4 points	Provides a general response to the scenario. 3 points		Provides unclear response to scenario and is difficult to understand. 2 points	Response is unfocused, illogical or incoherent. 1 point	Quality not shown. 0 point
Grammar, Spelling and Mechanics	Response has not errors in grammar, spelling or mechanics. 4 points	Response has 3 or less errors in grammar, spelling or mechanics. 3 points	Response has 4 or 5 errors in grammar, spelling and mechanics. 2 points		Response has 6 or more errors in grammar, spelling and mechanics. 1 point	Unacceptable. 0 point

Submit your responses to the questions in the online text box or attach a file to the assignment submission link.

Assignment - Credit Scenarios

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