Peter Jan Tana FINMN 6-A

THE SOLUTION:

The credit control needs to examine first the credit history of the client if she/he had past debt
from other institution and of course the credit score of the client to assess the credit worthiness, if the
client is capable, fit and qualified to apply certain amount of credit. That implies that whether you apply
for a credit card, a mortgage, a car loan, or even an apartment lease, credit control department will be
unable to find any information on your credit report since client has no visibility of his/her past debt. This
may limit the types of financial products you are eligible for and make some financial milestones, such as
home ownership, more difficult to reach. This can limit the financial products that clients qualify for and
may make some financial objectives, such as buying a house is difficult to achieve. Thus, client must get a
secured credit card.

Transparency is necessary, this is to counteract with a safe and smart execution within the
company. In order to track the age of debts owned by the client, credit controller must be accountable in
assessing the new credit request and have reviewed to the customers’ credit ratings with banks. The client
must be also responsive in setting up all the necessary documents needed for a client to accomplish of
course considering the terms and conditions. Furthermore, a credit controller must able to build and
maintain strong relationships with clients, as this highly beneficial in a smooth running of accounts.

THE RESULTS:

Getting a secured credit card will make the client monitor his/her debts so that the credit control
department would see the visibility of the client’s past debt. Also, getting secured card is a great tool to
help the client begin building a strong credit history, as long as you are paying your debt on time, as a
result, lender reports card payments to the credit bureau. On the other hand, client and the credit
controller will obtain a strong attention to each other to be able to access and update the information
needed to perform an immediate action when this problem occurs again.