When considering a loan application,bankers will consider:
A)the credit score of the applicant.
B)the four Cs of credit
C)the five Cs of credit.
D)the applicant's character only.

Question

Quizplus · Accepted Answer

The five Cs of credit are character, capacity, capital, collateral, and conditions. While the credit score of the applicant (one of the four Cs) is important, bankers will also consider other factors such as the applicant's overall financial situation, their assets, and their ability to pay back the loan. Therefore, choice C (the five Cs of credit) is the best answer as it encompasses all the factors that bankers will consider when evaluating a loan application.

When Considering a Loan Application,bankers Will Consider