Loan Processing – Opening a Credit Card Loan

Cards Cards Loan Processing - Opening a Credit Card Loan

This document outlines the procedure for opening a new credit card loan within the FLEX Loan Processing system. The process is similar to opening any other loan type in FLEX.

1. Loan Application (Optional)

Opening a loan application is an optional step. If a loan application is not required, you can proceed directly to Step 3 by using the “New Loan” button (not explicitly shown in the provided screenshots, but implied).

To Start a Loan Application:

  • Click the “New App” button located in the “Loan Applications” section of the “Loan Processing – Account Selection” screen.

Applicant Information:

  • Existing Member: Enter the member’s account number.
  • New Applicant (Non-Member): Enter their Social Security Number (SSN).
    • Note: If the application for a non-member is approved, an account must be opened for them prior to opening the new loan.
  • Click ‘Next’ to proceed with creating the loan.

2. Selecting a Suffix

This step involves selecting the appropriate suffix for the loan.

Procedure:

  • On the “Loan Processing – Type/Suffix Selection” screen, select the desired suffix from the available options.
  • Click the ‘Next’ button.

3. Credit Card Loan Setup

This step involves configuring the details of the credit card loan. While specific fields are not detailed in the provided document, the screenshot indicates sections for:

  • Loan Information:
    • Type (e.g., VS)
    • Credit Limit
    • Payment Method
    • Loan Officer
    • Over Limit Fee (Yes/No)
    • Late Payment Fee (Yes/No)
    • Cash Advance Fee (Yes/No)
    • Annual Fee
    • Annual Fee Month
  • Payment Information:
    • Next Payment Date
    • Payment Amount
  • Credit Score Info:
    • Recent Scores
    • CB Score
    • CB Grade
  • Insurance Information:
    • Insurance Eligible (Yes/No)
    • Disability Type
    • Disability Plan
    • Life Type
    • Life Plan
  • Source Suffix
  • Late Charge Information:
    • Late Charge Method
    • Fixed Amount

4. Categories Loan Setup

This step allows you to define and assign categories to the credit card loan.

Procedure:

  • On the “Loan Processing – Categories Loan Setup” screen, you will see two sections: “All Categories” and “Selected Categories.”
  • Move desired categories from “All Categories” to “Selected Categories” using the provided arrow buttons.
  • To edit a category, select it and click “Edit Category”. This opens the “Category Maintenance” window, which includes fields for:
    • General: Category, Description, Eligible for Bonus, Variable Rate Group
    • Interest: Category Interest Rate
    • Expiration: Date, Action, New Category, New Rate
    • Delinquency: Maximum Days Delinquent, Action, New Category, New Rate
    • Advance Fees: Fee Code, Fixed Fee Amount, Fee Percentage, Minimum Fee, Maximum Fee
  • Click Save in the “Category Maintenance” window after making changes.

5. Variable Rate Extension (Optional)

This step is only necessary if you are setting up variable rate cards. It can be skipped for fixed-rate cards.

Procedure:

  • Access this section (e.g., “Variable Rate Category 1” from the left-hand navigation in “Loan Processing”).
  • Fill in the required information on the “Loan Processing – Card Category Variable Rate” screen, which includes:
    • Rate Information: Current Loan Rate, Current Loan Rate based on Index, Rate basis (Plus/Minus Margin), Rate Floor/Ceiling, Beginning Rate for Year/Anniversary.
    • Rate Change Information: Frequency, Next Change Date.
    • Pre-Notice Information: No of Days before change to notify.
    • Rate Change Information: Max Life Increase/Decrease %, Max Incremental Increase/Decrease %, Max Yearly Increase/Decrease %.