5 c's of credit Flashcards
1
Q
Character
A
responsibility towards debts = their credit history
2
Q
Capacity
A
financial ability to repay the loan
3
Q
Capital
A
sufficient assets to cover the debt
4
Q
Conditions
A
things that could affect your ability to pay back, how secure is your job? how is the employment situation in your area?
5
Q
Collateral
A
property pledged to cover the loan, so if you can’t pay the bank can seize the pledged property
