The most important of the four C's of credit are
A) character and conditions.
B) character and capacity.
C) capital and collateral.
D) collateral and capacity.

Question

Quizplus · Accepted Answer

The most important of the four C's of credit are character and capacity. Character refers to a borrower's trustworthiness and willingness to repay debts on time. Capacity refers to a borrower's ability to repay debts, based on their income and expenses. While the other two C's (capital and collateral) are important, they are not as essential as character and capacity in determining a borrower's creditworthiness.

The Most Important of the Four C's of Credit Are