Unit of competency Outline

Date retreived
22/07/2026 10:08 AM AWST

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Promote understanding of the role and effective use of consumer credit

Promote understanding of the role and effective use of consumer credit

Unit of competency
National Code
FNSCRD503
State Code
AUQ85
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
081101 - Banking And Finance
Original Release Date
16/09/2015
Nominal Hours
50
Description
This unit describes the skills and knowledge required to explain the functions and implications of different forms of consumer credit as part of developing the financial skills of clients.It applies to individuals who use a range of communication styles and techniques to provide comprehensive analysis of information in managerial support or service roles, particularly to clients with minimal financial awareness. No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Identify types of appropriate consumer credit options for clients
  • 1.1 Identify clients’ financial situations, requirements and objectives in regards to consumer credit by making reasonable enquiries
  • 1.2 Explain types of appropriate consumer credit facilities to clients in plain language
  • 1.3 Provide clients with written supporting documentation and guide them through key aspects of documentation
2. Identify and discuss costs of using credit
  • 2.1 Explain relevant features, terms and conditions of appropriate consumer credit facilities to clients, with impacts and possible risks disclosed in a clear and concise manner
  • 2.2 Explain fees and costs associated with different types of credit options for clients
  • 2.3 Demonstrate how to interpret differences between advertised interest rates and comparison rates to clients
3. Promote effective use of consumer credit
  • 3.1 Discuss strategies to avoid excessive or unmanageable debt with clients in relation to their financial situations
  • 3.2 Discuss strategies to minimise fees and cost of credit with clients
4. Provide clients with information regarding credit reference reports
  • 4.1 Explain role of credit reference agencies to clients in plain language
  • 4.2 Emphasise purpose and use of credit reference reports in assessing loan applications and explain implications of establishing a poor credit history to clients
  • 4.3 Explain right to access and methods of obtaining own credit reference report, and provide relevant contact details to clients for follow up if required
No information
No information
Replaces
State Code National Code Title Type
D4090 FNSCRD503A Promote understanding of the role and effective use of consumer credit Unit of competency
Replaced By
State Code National Code Title Type
OEB97 FNSCRD513 Promote client understanding of the role and effective use of consumer credit Unit of competency