The 5 C’s of Credit: Banks Analyze for Creditworthiness

5 C’S OF CREDIT

The 5 C’s of credit evaluate a borrower’s creditworthiness. Creditworthiness refers to a borrower’s ability to borrow, use, and return money based on the agreed conditions. Financial institutions use this factor to determine one’s credit limit and the interest rate to charge on loan.  They review five factors when evaluating a borrowers’ creditworthiness: character, capacity, … Read more