Answer :
To determine which person is the most creditworthy, we need to analyze their spending habits and understand how these habits affect their creditworthiness.
1. Sylvia:
- Uses her whole paycheck to buy food and necessities.
- Pays the minimum amount on her bills each month.
- Buys new clothes with a credit card.
Paying only the minimum amount on bills can negatively affect her credit score because it shows she relies on credit extensively and doesn't reduce her debt significantly. Additionally, buying clothes with a credit card increases her debt further.
2. Nancy:
- Uses her whole paycheck to buy food and necessities.
- Takes a trip each month, which she funds by adding to a personal loan with her credit union.
Continuously adding to a personal loan increases her overall debt. While personal loans can be a reasonable way to manage expenses, frequently increasing the loan amount can indicate financial instability.
3. Fiona:
- Buys food and necessities.
- Pays more than the minimum due on her bills each month.
- Uses leftover money in her checking account to go out with friends.
Paying more than the minimum amount on bills helps reduce debt faster and can improve her credit score. Using only the money left over in her checking account to go out indicates she is not taking on additional debt for leisure activities, which is financially responsible behavior.
4. Uli:
- Buys food and necessities.
- Pays the minimum amount on her bills each month.
- Uses leftover money in her savings to go out with friends.
Similar to Sylvia, paying only the minimum on bills can negatively impact Uli's credit score. Although she uses savings for leisure, consistently paying only the minimum on bills is not a good financial habit.
Considering all these points, Fiona demonstrates the most financially responsible behavior:
- She pays more than the minimum on her bills, which helps improve her credit score.
- She does not rely on additional debt, instead using her remaining checking account balance for discretionary spending.
Therefore, Fiona is the most creditworthy person.
The person who is the most creditworthy: Fiona
1. Sylvia:
- Uses her whole paycheck to buy food and necessities.
- Pays the minimum amount on her bills each month.
- Buys new clothes with a credit card.
Paying only the minimum amount on bills can negatively affect her credit score because it shows she relies on credit extensively and doesn't reduce her debt significantly. Additionally, buying clothes with a credit card increases her debt further.
2. Nancy:
- Uses her whole paycheck to buy food and necessities.
- Takes a trip each month, which she funds by adding to a personal loan with her credit union.
Continuously adding to a personal loan increases her overall debt. While personal loans can be a reasonable way to manage expenses, frequently increasing the loan amount can indicate financial instability.
3. Fiona:
- Buys food and necessities.
- Pays more than the minimum due on her bills each month.
- Uses leftover money in her checking account to go out with friends.
Paying more than the minimum amount on bills helps reduce debt faster and can improve her credit score. Using only the money left over in her checking account to go out indicates she is not taking on additional debt for leisure activities, which is financially responsible behavior.
4. Uli:
- Buys food and necessities.
- Pays the minimum amount on her bills each month.
- Uses leftover money in her savings to go out with friends.
Similar to Sylvia, paying only the minimum on bills can negatively impact Uli's credit score. Although she uses savings for leisure, consistently paying only the minimum on bills is not a good financial habit.
Considering all these points, Fiona demonstrates the most financially responsible behavior:
- She pays more than the minimum on her bills, which helps improve her credit score.
- She does not rely on additional debt, instead using her remaining checking account balance for discretionary spending.
Therefore, Fiona is the most creditworthy person.
The person who is the most creditworthy: Fiona
