ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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character, collateral, and capacity
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address
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gender
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level of education
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Detailed explanation-1: -Your creditworthiness is also measured by your credit score, which is a three-digit number based on factors in your credit report. A high credit score means your creditworthiness is high and a lower credit score indicates lower creditworthiness.
Detailed explanation-2: -Most lenders use the five Cs-character, capacity, capital, collateral, and conditions-when analyzing individual or business credit applications.
Detailed explanation-3: -Before securing any type of loan, creditors will evaluate credit risk to determine eligibility and loan terms. To assess this risk, most lenders take into consideration things like a borrower’s credit scores, debt-to-income ratio and total debt.
Detailed explanation-4: -CHARACTER – Your credit history or track record for repaying your debt. CAPITAL – The cash you have to put towards the investment. COLLATERAL – The asset used to secure the loan. CAPACITY – Your ability to repay a loan or debt-to-income ratio.