Emily got a new job that pays extremely well. This is good because two years ago she was forced to go into bankruptcy when she couldn't repay her debt. She would like to purchase a used car so she can drive to work. However, she knows it will be hard to get the bank to provide her with a car loan at favorable interest rates due to her recent bankruptcy. She has therefore saved her money diligently so she will have enough to pay for the car outright. In this case, Emily lacks

Question

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Emily's recent bankruptcy indicates that she may have a poor credit history, which could make it difficult for her to obtain a favorable car loan. Thus, she lacks credit, which is the ability to borrow money based on her promise to repay it in the future. However, she has been saving her money diligently, which indicates that she has discretionary income, or income that is available to be used for non-essential purchases like a used car.

Emily Got a New Job That Pays Extremely Well