Interview of a bank manager or financial planner?

Question

I need to do an interview with a bank manager of financial planner for my Economics Class. I would have asked someone here but there is a situation that won't allow me to.

1. What are the implications of having either a positive or negative credit history? (Ask for specific examples.)

2. What would constitute a responsible use of credit?

3. What are three (or more) inappropriate uses of credit?

4. When selecting a credit card, what factors should one consider?

Personal Info (If you don't wish to, that's okay as well)
Name:
Company they work for:
Business Address:
Business Phone number:
E-mail address (if possible):

Answer 1

Best Answer - Chosen by Voters

1) A positive credit history will afford you the opportunity to make purchases on credit, that others may have to do with cash. For example, someone with good credit would be an ideal customer for bank to do business with. Think of a credit report like a report card - lenders use this to determine how responsible, or credit-worthy you are. If your history leads them to believe that you would make a good borrower, then they know that it's likely you'll have no problem paying them back. They'll collect their finance charges (their profit) when you pay back the loan. Also, those with poor credit usually have higher interest rates. If you're credit is good, you generally can qualify for a better interest rate. When you see these car commercials that offer 0% interest for a period of time, it usually will say "for qualified buyers". That applies to those with good credit.

2) Making at least the minimum payments. Making payments on time. Not using credit as a means to buy any and everything.

3) This kind of depends on the person, but generally if you know you can't afford to pay it back, then getting a line of credit just to make a purchase isn't a good idea. Getting credit with no intentions of paying it back, just to complete the transaction, isn't a good idea. And thinking that a good credit score means you have the freedom to buy whatever you choose...there has to be SOME discipline, and if there isn't, you'll figure it out when the first bills come in. :)

4) The rate you will be charged, other fees associated with the type of card, and whether or not that particular credit card company reports to all three credit bureaus...

Hope this helps!!

Herb
Denton, TX
Former Banking Branch Manager

Source(s):

7+ years in banking

Answer 2

1. Positive: High score will allow purchase of home or car at a lower tiered rate. Employer review for background check will be favorable. Insurance rates will be lower based on good scoring.
Negative: Chargeoffs and late pays reflect poor habits and little if any ability to manage money. May file future bankruptcy, pay late or not pay bills.

2. Responsible use is paying on time in full or making payment on time as agreed. This could be for revolving credit, mortgages or car loans.

3. Doing balance transfers from card to card without ever paying the bill.Getting a home equity loan to go to Vegas.Drawing down a credit card line to start a risky business.

4. Check bankrate.com to compare features. If you pay in full every month look for a benefit such as miles or points especially if you spend a lot every year (at least 20k). If you make payments look for a zero or low APR intro for at least 6 months and low interest rates after that.

Source(s):

Former Chase banker. Managers would not be able to answer these questions but Personal Bankers or Sales would.