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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.
- Spring '11