Appendix C the Five C's Worksheet

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------------------------------------------------- Associate Level Material Appendix C The Five C’s Worksheet Directions: Identify the following factor descriptions to their corresponding C of credit. The five C’s are listed below: * Capacity * Capital * Collateral * Character * Conditions Condition | Which C? | Your household cash flow helps to determine this C: | • Capacity | Under these __________, you may still be approved with a cosigner | • Conditions | This demonstrates how much your assets are worth. | • Capital | Using your car or house as a promise to pay | • Collateral | This makes you a better credit risk to the lender | • Collateral | Lenders will evaluate your debt-payment ratio. | • Capacity | The lender is taking your unique situation under consideration. | • Conditions | Previous credit history | • Character | This shows how long you have worked for your employer and if you have obtained an education. | • Character | Having more at stake may make you less likely to default on a loan. | • Capital | CERTIFICATE OF ORIGINALITY I certify that the attached paper is my original work. I am familiar with and acknowledge my responsibilities, which are part of the University of Phoenix Student Code of Academic Integrity. I affirm that any section of the paper which has been submitted previously is attributed and cited as such, and that this paper has not been submitted by anyone else. I have identified the sources of all information whether quoted verbatim or paraphrased, all images, and all quotations with citations and reference listings. Along with citations and reference listings, I have used quotation marks to identify quotations of fewer than 40 words and have used block indentation for quotations of 40 or more words. Nothing in this assignment violates copyright, trademark, or other

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