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Appendix_E[1] FIVE C'S

Appendix_E[1] FIVE C'S - This makes you a better credit...

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Axia College 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: This C would be Capacity. Under these __________, you may still be approved with a cosigner This C would be Conditions. This demonstrates how much your assets are worth. This C would be Capital Using your car or house as a promise to pay This C would be Collateral.
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Unformatted text preview: This makes you a better credit risk to the lender This C is Collateral Lenders will evaluate your debt-payment ratio. This C would be Capacity. The lender is taking your unique situation under consideration. This C would be Conditions. Previous credit history This C would be Capacity. This shows how long you have worked for your employer and if you have obtained an education. This would be Conditions. Having more at stake may make you less likely to default on a loan. This C would be Capital. FP/101...
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