FP week 3 - Week Three DQ 1 Post a 150- to 300-word...

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Week Three DQ 1 Post a 150- to 300-word response to the following discussion question by clicking on Reply: Review p. 113 of Personal Finance and list the five C’s of credit. Provide a brief description of each. The Following is the five c’s of credit with a description of each of them: Capital- demonstrates how much your assets are worth, lenders are interested in your households net worth or capital. If your total assets are greater than total debts lenders consider that you could if needed liquidate other assets in order to repay the loan Capacity- a lenders assessment of your ability, or capacity to repay debts or loans Collateral- is normally used in a loan protection ( e.g. house, car ) is safer to the lender than one that is not Conditions- are a unique set of rules that are set up by the lender and are taken into consideration upon the approval of a loan. One example of a rule might be that the signer would have to have a co-signer in order for the loan to be approved Character- your previous credit, employment, and education history tells the lender about your character I know that personally I do not have the greatest credit. As a matter of fact I do not even have the credit and this all falls on me. I state this because I should have been more responsible in making sure all of my utilities and other important bills are paid. I have stated before that I am not a
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This note was uploaded on 04/05/2012 for the course EDUCATION ETH 125 taught by Professor Hoge during the Spring '12 term at University of Phoenix.

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FP week 3 - Week Three DQ 1 Post a 150- to 300-word...

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