Claire and Jamie Fraser have come into the First Bank of Moose Jaw to apply for a loan to purchase a vintage sports car. You are the bank lending officer that takes their loan application.

They have a downpayment of $10,000 and want to finance the remaining $60,000.

They are both 24 years of age. They are expecting their first child in a month. Jaime has been working as a bartender at new nightclub that just opened in Moose Jaw two months ago. Claire is a very bright girl who already has her law degree and works for a prestigious law firm in town. She has been at the firm for just over a year.

They provide you with the following financial information:

Employment Income - Jamie

$30,000/year plus tips; Monthly deductions $750

Employment Income -Claire

$240,000/year; Monthly deductions $3,800

Interest & Dividend Income:

$18,000 per year

Monthly living expenses

$4,600

Other loans

$300,000 remaining on a $500,000 home mortgage. $2,800/month payments

Two credit cards :

$2500 outstanding on a $30,000 limit card.

$4000 otustanding on a $12,000 limit card

Combined minimum monthy payment is $300

Assets:

$120,000 in various investments

$20,000 in liquid assets

$600,000 home in Iron Bridge

$70,000 other assets (autos, furniture)

You pull their Credit Bureau File and find that they have a Credit Score of 750 and a Credit Rating of I1 / R2. All credit obligations show as being currently up to date although the report indictates twice in the last 3 years where a credit card minimum payment was up to 30 days in arrears.

Will you give Claire and Jamie the loan that they are applying for today? Utilize the 5 Cs of Credit in your analysis.