[c#] What does "Use of unassigned local variable" mean?

There are many paths through your code whereby your variables are not initialized, which is why the compiler complains.

Specifically, you are not validating the user input for creditPlan - if the user enters a value of anything else than "0","1","2" or "3", then none of the branches indicated will be executed (and creditPlan will not be defaulted to zero as per your user prompt).

As others have mentioned, the compiler error can be avoided by either a default initialization of all derived variables before the branches are checked, OR ensuring that at least one of the branches is executed (viz, mutual exclusivity of the branches, with a fall through else statement).

I would however like to point out other potential improvements:

  • Validate user input before you trust it for use in your code.
  • Model the parameters as a whole - there are several properties and calculations applicable to each plan.
  • Use more appropriate types for data. e.g. CreditPlan appears to have a finite domain and is better suited to an enumeration or Dictionary than a string. Financial data and percentages should always be modelled as decimal, not double to avoid rounding issues, and 'status' appears to be a boolean.
  • DRY up repetitive code. The calculation, monthlyCharge = balance * annualRate * (1/12)) is common to more than one branch. For maintenance reasons, do not duplicate this code.
  • Possibly more advanced, but note that Functions are now first class citizens of C#, so you can assign a function or lambda as a property, field or parameter!.

e.g. here is an alternative representation of your model:

    // Keep all Credit Plan parameters together in a model
    public class CreditPlan
    {
        public Func<decimal, decimal, decimal> MonthlyCharge { get; set; }
        public decimal AnnualRate { get; set; }
        public Func<bool, Decimal> LateFee { get; set; }
    }

    // DRY up repeated calculations
    static private decimal StandardMonthlyCharge(decimal balance, decimal annualRate)
    { 
       return balance * annualRate / 12;
    }

    public static Dictionary<int, CreditPlan> CreditPlans = new Dictionary<int, CreditPlan>
    {
        { 0, new CreditPlan
            {
                AnnualRate = .35M, 
                LateFee = _ => 0.0M, 
                MonthlyCharge = StandardMonthlyCharge
            }
        },
        { 1, new CreditPlan
            {
                AnnualRate = .30M, 
                LateFee = late => late ? 0 : 25.0M,
                MonthlyCharge = StandardMonthlyCharge
            }
        },
        { 2, new CreditPlan
            {
                AnnualRate = .20M, 
                LateFee = late => late ? 0 : 35.0M,
                MonthlyCharge = (balance, annualRate) => balance > 100 
                    ? balance * annualRate / 12
                    : 0
            }
        },
        { 3, new CreditPlan
            {
                AnnualRate = .15M, 
                LateFee = _ => 0.0M,
                MonthlyCharge = (balance, annualRate) => balance > 500 
                    ? (balance - 500) * annualRate / 12
                    : 0
            }
        }
    };