ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Character
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Credit Bureau
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Creditworthy
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Capacity
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Detailed explanation-1: -Character is a responsible attitude toward honoring obligations, often judged on evidence in the person’s credit history. Creditors often use stability as a measure of character as well.
Detailed explanation-2: -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.
Detailed explanation-3: -Character refers to the composition of a borrower’s financial history and financial health. Character incorporates a borrower’s payment history, credit score, credit history, and relationship with prior debtors.
Detailed explanation-4: -Creditworthiness is a measure of a borrower’s risk to a lender. Creditworthiness is determined by several factors including your repayment history and credit score. You can improving your creditworthiness by making payments on time and reducing debt.
Detailed explanation-5: -Discrimination means treating some people differently from others.