Phase 4 Discussion Board Essay Example | Topics and Well Written Essays - 500 words - 1

Phase 4 Discussion Board - Essay Example Yes, I would switch to the Visa Student Card. This is because the interest charged using the Visa Student Card of $270 is lower compared to the interest charged using my existing credit card of $412.50. Most important, I would switch to any credit card that offers lower interest rate on my purchases after six months taking in account that the credit cards offers an interest rate of 0% on all purchases and balance transfers for six months. In case of Open-End Credit, a borrower can continue to borrow (purchase) and pay in various amounts. In case of Closed-End Credit, the lender tells the borrower how much they can borrow and a fee schedule is set up, which the borrower pays until the debt is paid off. In general, Open-End Credit is for small purchases and Closed-End Credit is for bigger purchase. Credit card purchases are an example of Open-End Credit and a Car loan taken is an example of Closed-End Credit. Many large appliance stores offer simple interest loans to their customers. For example, suppose a customer is interested in purchasing a $1,400.00 refrigerator at Myer Appliances. The customer is unable to pay the total amount at the time of purchase, so Myer’s lets the customer make a down payment of $140 and then 12 monthly payments of $120.75.   Suppose that you are unable to pay the total amount for your appliance at the time of purchase, so you take out a simple interest loan. The store will let you make a 10% down payment and then make 12 equal monthly payments for the remaining balance at a simple interest rate of