Determining a Loan: When a lender determines weather or not to give a loan, they look at the borrowers credit score. A credit score is a three digit number that runs most peoples financial life. Credit scores can determine both the interest rate on a loan as well as if the loan will be lent int he first place. The higher the credit score the better, and I will explain more on the next page.
The Four C's:
Character- How well debts are payed
Capacity- How large the payments you could make are
Collateral- Material security to insure the loan
Capital- The amount of money you have saved in reserve
Sources: http://www.northwestohio.com/news/story.aspx?id=801773#.Um6CPvlQESU
The Four C's:
Character- How well debts are payed
Capacity- How large the payments you could make are
Collateral- Material security to insure the loan
Capital- The amount of money you have saved in reserve
Sources: http://www.northwestohio.com/news/story.aspx?id=801773#.Um6CPvlQESU