This new 5 Cs from Borrowing from the bank is a type of words always describe the five major factors familiar with influence a potential individuals creditworthiness. Creditors fool around with credit scores in order to measure and decide whether an candidate is approved getting credit to see the interest cost and you may borrowing from the bank limits to possess established borrowers.
A credit report will bring a comprehensive membership of your own borrowers overall obligations, newest balance, borrowing from the bank restrictions, and you will reputation of non-payments and you may bankruptcies, if any. (more…)