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| The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
The role of consumer credit includes: | enabling approved applicants the ability to purchase items (goods or services) where the cost of the item exceeds current savings available. |
Advantages and disadvantages of credit may include: | advantages:can obtain and use purchased item immediatelyminimises the need to carry cash or write chequesallows for instalment payments on expensive itemsconvenient form of payment when travelling, especially overseasdisadvantages:may increase cost of items purchased due to interest accruedusually attracts other fees such as account servicing feescan lead to compulsive buying habitscreates a false sense of wealth. |
Consumer credit facilities may include: | fixed:personal loansleasehire purchasebuy now, pay later schemesrevolving:credit cardsstore cardsoverdraft. |
Plain language refers to: | written or spoken forms of language easily understood by the listener, giving particular regard to the listener's characteristics including:ageethnicity basic skills of comprehensiondefining key terms and phrases, assuming little or no prior knowledge of the subject and may in some cases require the assistance of an interpreter. |
Differences between unsecured and secured loans include: | a secured loan is supported by an underlying asset while an unsecured loan is notunsecured loans attract a higher interest rate due to increased risk to the lending institution. |
Implications of default on secured loans include: | repossession of the underlying asset by the lending institutionany shortfall in sale of repossessed asset against outstanding loan amount must be paid by borrower. |
Fees and costs associated with different credit options may include: | account servicing feescredit purchase feeslate payment feesloan establishment feeswithdrawing from a foreign Automatic Teller Machine (ATM). |
Ways to compare advertised interest rates may include: | informing the client of the comparison rate which includes all associated fees and charges. |
Strategies to minimise fees on credit may include: | consolidating savings and credit facilities with the one institution where account servicing fees can be cancelled outknow how many free transactions come with the cardpaying the minimum monthly instalment on time. |
Ways to avoid credit card fraud include: | not disclosing Personal Identification Number (PIN) to anyoneselecting a PIN only the cardholder would knowsigning the back of the credit card. |
Implications of establishing poor credit history may include: | higher interest rate penaltiesinability to obtain finance in the futuredisadvantaged applications for rental accommodationnecessity to obtain guarantor in future loans. |
Methods of obtaining own credit reference report may include: | writing, emailing or telephoning the relevant agency requesting a copy of one's own file, having provided relevant details to identify self |