FP 120 PERSONAL FINANCE APPENDIX E WEEK 2 TEAM ASSIGNMENT

FP 120 PERSONAL FINANCE APPENDIX E WEEK 2 TEAM ASSIGNMENT -...

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Running Head: The Five C’s Worksheet 1 Appendix E The Five C’s Worksheet Lissette Sanfiel, Lyanys Rodriguez-Garcia, Leonardo Tavarez FP/120 Essential of Personal Finance June 10, 2011 Andre Prince
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Running Head: The Five C’s Worksheet 2 University of Phoenix Material Appendix E The Five C’s Worksheet Directions: Identify the following factor descriptions to their corresponding C of credit. The five C’s are listed below: Capacity Capital Collateral Character Conditions Condition Which C? Your household cash flow helps to determine this C: Capacity Under these __________, you may still be approved with a cosigner. Conditions This demonstrates how much your assets are
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Unformatted text preview: worth. Capital Using your car or house as a promise to pay Collateral This makes you a better credit risk to the lender – this could be any of the C’s. For example, assets that are offered as security against default. Collateral Lenders will evaluate your debt-payment ratio. Capacity The lender is taking your unique situation under consideration. Conditions Previous credit history Character This shows how long you have worked for your employer and if you have obtained an education. Character Having more at stake may make you less likely to default on a loan. Capital...
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This note was uploaded on 07/25/2011 for the course FP 120 taught by Professor None during the Spring '11 term at University of Phoenix.

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FP 120 PERSONAL FINANCE APPENDIX E WEEK 2 TEAM ASSIGNMENT -...

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