$18\mathrm{.}1$ Case $1$: Marie's Credit Card Application

Case Background

It is your first day on the job at the local branch of NAT Bank and Marie Smith has booked an appointment with you to discuss the potential of applying for a credit card. Marie has been employed at ACME Processors as a fulltime supervisor for the past $12\frac{1}{2}$ years. She earns $$42,000$ a year. Marie would like a credit limit of $$5,000$ and does not want to take advantage of any balance transfer offers at this time. She is applying for a new credit card because her other card is not always accepted and she thinks that it would be good idea to have a backup card. Marie does not currently own a home. She pays $$800$ a month in rent. This does not include heat and power which costs her $$150$ a month. Marie has been saving for a home with a regular RRSP deposit of $$100$ every two weeks. She has accumulated $$10,000$ in her RRSP$.$ Marie drives a three year old Chevrolet Malibu, which is currently worth around $$12,000.$ In addition she has $$1,000$ in a chequing account.

Marie's credit report shows a car lease with GMAC. The lease balance is currently $$9,751,$ with a monthly payment of $$450.$ Marie also has a line of credit with a limit of $$15,000.$ There is no balance on this account at this time. Marie's credit card has a balance of $$3,000$ with a limit of $$7,000.$ Marie recently paid off another loan.

Marie's Demographic and Financial Information

$\backslash$table$[[$Marie Smith$],[$Address$,1-111$ Any Street, AnyTown, Canada, TTT $777],[$Time at Current Address,$1\mathrm{.}5$ years$],[$Time at Previous Address,$5$ years$],[$Marie$\text{'}$s Employer,ACME Processors, $12$ years$],[$Marie$\text{'}$s Date of Birth,Jan $1.$ Current Age: $37],[$Marie$\text{'}$s Income,$$42,000$