The Five C's of Credit refer to the:
A)Credit reports issued by Dun & Bradstreet
B)Interpretation of numerical credit scoring systems
C)Attributes that help determine creditworthiness
D)Financial ratios used to determine Altman's Z score

Question

Quizplus · Accepted Answer

The Five C's of Credit are Character, Capacity, Capital, Collateral, and Conditions. These attributes help lenders determine the creditworthiness of potential borrowers. Dun & Bradstreet issues credit reports, but that is not what the Five C's refer to. Numerical credit scoring systems are a part of Capacity, but not the only factor. Altman's Z score uses financial ratios to determine a company's financial health, but that is not related to the Five C's.

The Five C's of Credit Refer to The