Five Cs of credit

(redirected from Five C's of Credit)

Five Cs of credit

Five characteristics that are used to form a judgment about a customer's creditworthiness: character, capacity, capital, collateral, and conditions.

Five Cs of Credit

Five factors a lender considers when evaluating whether or not to extend credit to a potential borrower. Importantly, the five Cs of credit include both quantitative and qualitative measures. They are: character (or the borrowers' reputation), capacity (a measure of the borrower's ability to repay by comparing his/her debt service to income), capital available, collateral pledged against the loan, and the conditions of the loan (such as the interest rate, monthly payment, and so forth).
References in periodicals archive ?
DiCara will discuss about five C's of credit and how they are related to the real estate transactions.
8220;For decades banking and investment professionals have used the Five C's of Credit Analysis to guide their business lending decisions.