Explain The Five C's Of Credit Worksheet
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 means the ability or intent to repay your debts, basing it upon your household cash flow; lenders typically follow different methods to consider my expenses relative to the person’s income.
• Capital is the household’s net worth, by combining all assets, and making sure that the debts is smaller than the total assets, the lender can verify that the loan will be paid by liquidating all assets should you need to pay your debts, sort of risking all you got in order to get their trust.
• Collateral can be either your car, home, boat, anything that you can pledge to make the loan
Directions: Identify the following factor descriptions to their corresponding C of credit.
The five C’s are listed below:
• Capacity means the ability or intent to repay your debts, basing it upon your household cash flow; lenders typically follow different methods to consider my expenses relative to the person’s income.
• Capital is the household’s net worth, by combining all assets, and making sure that the debts is smaller than the total assets, the lender can verify that the loan will be paid by liquidating all assets should you need to pay your debts, sort of risking all you got in order to get their trust.
• Collateral can be either your car, home, boat, anything that you can pledge to make the loan