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Evidence Guide: FNSFLT203 - Develop knowledge of debt and consumer credit

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSFLT203 - Develop knowledge of debt and consumer credit

What evidence can you provide to prove your understanding of each of the following citeria?

Identify and discuss role of credit in society

  1. Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower
  2. Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use
  3. Discuss impact of consumer debt on national economy
Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss impact of consumer debt on national economy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss range of credit options available

  1. Identify and compare types of credit facilities used by businesses
  2. Identify and compare types of credit facilities used by individuals
  3. Identify and discuss differences between unsecured and secured loans
  4. Explain implications of default on secured loans to borrower
Identify and compare types of credit facilities used by businesses

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and compare types of credit facilities used by individuals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss differences between unsecured and secured loans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain implications of default on secured loans to borrower

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and compare costs of using credit

  1. Compare fees and costs associated with different types of credit options
  2. Compare features and associated risks of fixed versus variable interest rates
  3. Identify ways to compare advertised interest rates and effects of fees and charges
Compare fees and costs associated with different types of credit options

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare features and associated risks of fixed versus variable interest rates

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify ways to compare advertised interest rates and effects of fees and charges

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss effective use of consumer credit

  1. Identify and discuss ways to avoid excessive or unmanageable debt
  2. List strategies to minimise fees on credit
  3. Discuss importance of meeting minimum payments on credit cards
  4. Identify and discuss ways to avoid credit card fraud
Identify and discuss ways to avoid excessive or unmanageable debt

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

List strategies to minimise fees on credit

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss importance of meeting minimum payments on credit cards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss ways to avoid credit card fraud

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain personal credit rating and history

  1. Describe role of credit reference agencies
  2. Explain purpose and use of credit reference reports in assessing loan applications
  3. Identify and discuss implications of establishing a poor credit history
  4. Describe methods of obtaining own credit reference report and discuss right to access the report
Describe role of credit reference agencies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain purpose and use of credit reference reports in assessing loan applications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss implications of establishing a poor credit history

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe methods of obtaining own credit reference report and discuss right to access the report

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and discuss role of credit in society

1.1 Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower

1.2 Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use

1.3 Discuss impact of consumer debt on national economy

2. Identify and discuss range of credit options available

2.1 Identify and compare types of credit facilities used by businesses

2.2 Identify and compare types of credit facilities used by individuals

2.3 Identify and discuss differences between unsecured and secured loans

2.4 Explain implications of default on secured loans to borrower

3. Identify and compare costs of using credit

3.1 Compare fees and costs associated with different types of credit options

3.2 Compare features and associated risks of fixed versus variable interest rates

3.3 Identify ways to compare advertised interest rates and effects of fees and charges

4. Identify and discuss effective use of consumer credit

4.1 Identify and discuss ways to avoid excessive or unmanageable debt

4.2 List strategies to minimise fees on credit

4.3 Discuss importance of meeting minimum payments on credit cards

4.4 Identify and discuss ways to avoid credit card fraud

5. Explain personal credit rating and history

5.1 Describe role of credit reference agencies

5.2 Explain purpose and use of credit reference reports in assessing loan applications

5.3 Identify and discuss implications of establishing a poor credit history

5.4 Describe methods of obtaining own credit reference report and discuss right to access the report

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and discuss role of credit in society

1.1 Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower

1.2 Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use

1.3 Discuss impact of consumer debt on national economy

2. Identify and discuss range of credit options available

2.1 Identify and compare types of credit facilities used by businesses

2.2 Identify and compare types of credit facilities used by individuals

2.3 Identify and discuss differences between unsecured and secured loans

2.4 Explain implications of default on secured loans to borrower

3. Identify and compare costs of using credit

3.1 Compare fees and costs associated with different types of credit options

3.2 Compare features and associated risks of fixed versus variable interest rates

3.3 Identify ways to compare advertised interest rates and effects of fees and charges

4. Identify and discuss effective use of consumer credit

4.1 Identify and discuss ways to avoid excessive or unmanageable debt

4.2 List strategies to minimise fees on credit

4.3 Discuss importance of meeting minimum payments on credit cards

4.4 Identify and discuss ways to avoid credit card fraud

5. Explain personal credit rating and history

5.1 Describe role of credit reference agencies

5.2 Explain purpose and use of credit reference reports in assessing loan applications

5.3 Identify and discuss implications of establishing a poor credit history

5.4 Describe methods of obtaining own credit reference report and discuss right to access the report