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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify and discuss role of credit in society
   • Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower
   • Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use
   • Discuss impact of consumer debt on national economy
2. Identify and discuss range of credit options available
   • Identify and compare types of credit facilities used by businesses
   • Identify and compare types of credit facilities used by individuals
   • Identify and discuss differences between unsecured and secured loans
   • Explain implications of default on secured loans to borrower
3. Identify and compare costs of using credit
   • Compare fees and costs associated with different types of credit options
   • Compare features and associated risks of fixed versus variable interest rates
   • Identify ways to compare advertised interest rates and effects of fees and charges
4. Identify and discuss effective use of consumer credit
   • Identify and discuss ways to avoid excessive or unmanageable debt
   • List strategies to minimise fees on credit
   • Discuss importance of meeting minimum payments on credit cards
   • Identify and discuss ways to avoid credit card fraud
5. Explain personal credit rating and history
   • Describe role of credit reference agencies
   • Explain purpose and use of credit reference reports in assessing loan applications
   • Identify and discuss implications of establishing a poor credit history
   • Describe methods of obtaining own credit reference report and discuss right to access the report