Read Jadyn's story below and then answer the following questions regarding credit history.
Jadyn is a first-year college student. Four months ago, she flew across the country to attend her dream school, leaving her family and car behind. Before leaving for school Jadyn opened a student credit card. She wanted to build credit so that she could get a new car in her new city.
Jadyn planned to use her credit card throughout each month on food purchases. However, since Jadyn is living on campus, she has an included meal plan and doesn’t use her card much. Twice a week Jadyn will eat out. This ensures her credit card bill is low enough that she can pay it fully each month while continuing to build credit.
Jadyn got a job as a babysitter, making the necessity of having a car urgent. Once she begins babysitting Jadyn will be able to afford a car payment of $200/month, car insurance, and still be able to pay 100% of her credit card bill each month IF her spending stays about the same. She wants to get a used car from a rental car company and plans to start using her credit card for gas which she has already factored into her spending budget. Jadyn submits a loan application to the rental car company.