Leena is a senior in high school. She babysits regularly and deposits her earnings into a checking account. She wants to get a credit card before leaving for college, but she is finding it difficult to get one. Determine whether Leena has a positive credit history, a negative credit history, or no credit history. Explain your answer.(2 points)
Based on the information provided, it is likely that Leena has no credit history. Since she is still in high school and babysitting for income, she may not have had the opportunity to establish credit yet. This is commonly the case for many young adults who are applying for credit cards for the first time.
Without any credit history, it can be difficult for Leena to get approved for a credit card as financial institutions have no record of her ability to manage credit responsibly. However, she can start building her credit by applying for a secured credit card or becoming an authorized user on a family member's credit card. Over time, as she demonstrates responsible credit usage and makes on-time payments, she can establish a positive credit history.