The Five C's assignment week 3

The Five C's assignment week 3 - Collateral This makes you...

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