Character, which is one of the traditional "five Cs" of credit analysis, refers to the ____.
A) ability of the applicant to meet its financial obligations (i.e., liquidity and cash flow)
B) general economic climate and its effect on the applicant's ability to pay
C) financial strength of the applicant (i.e., net worth)
D) willingness of the applicant to meet its financial obligations

Question

Quizplus · Accepted Answer

Character refers to the willingness of the applicant to meet its financial obligations, and is often measured through factors such as credit history, payment patterns, and references from other creditors.

Character, Which Is One of the Traditional "Five Cs" of Credit