GENEDFINAL[1] - Are You Credit Worthy A Closer Look at...

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Are You Credit Worthy? A Closer Look at Borrowing Money, and the Fed This project is an exploration through the credit market, the fed and the decisions we go through in choosing a type of borrowing, and why we may have done so. Michael Green, Kristin Welling, Daniel Sullivan, Michael Joaquin [Pick the date]
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Introduction Money, seemingly what makes the world go around. The desire for money has become increasingly popular through the years, an as we will explore there are many reasons for this. One of them is that we all need money, we want it, and if we see something that we would like to purchase we will purchase that item under certain circumstances. This is known as the transaction demand, considering that all persons will want to make purchases other then pay day, and having that money on hand whether they have to pay interest on it or not has no affect. The inconvenience of not having money “on hand” is what most people do not want, so they will do anything to have “their” money on them. Another aspect of life, are things that just come up, that are not expected, hence the other reason a lot of us want to have some extra money. A precautionary demand for money is described as having money for something that you may not need it for at that particular time, but do not want to come up short handed when the money is needed. Emergencies, and unexpected purchases would fall under this category for why we all want to have money, the fear of not having it is what we feel drives this demand for money. So we all want money of course, but cannot always have it, thankfully enough there is the credit system. The credit system is a very complex system that really just is a lender. When you obtain credit, you have basically obtained funds that you now have command over, in which you have agreed to repay with interest. Interest, usually an annual amount described in percentages is what you will owe on top of what ever you have already borrowed. Interest is given to you based on previous times that you have borrowed money. Interest is a grade, that other lenders have to look at to see just how worthy you are of repaying your loan amount. Through this project we will explore the credit market, how interest rates will affect you and your credit score among with more crucial information concerning your credit. The basis of this report will not only inform
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you of how your credit score may affect you, but also how the credit market operates and how to increase your credit. Major Ways to Borrow Money There are many ways for one to borrow money, as well as reasons in which to choose from the different options. Whether you need money for yourself, or you need money to finance a new home there are different options and strategies of how to go about doing so.
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