Question

When you apply for credit, the lender will review the "Four C's" to decide whether you are a good credit risk, or in other words, whether you are likely to pay back the loan. Which of the following is NOT one of the "Four C's"? Capacity, Capital, Character, and Collateral.

Answer 1

Answer:

Collateral  is not the one of the Four C's that the lender will consider before deciding to either give you the loan or not offering me a loan package.

Explanation:

The Four C's include Capacity of the borrower to payback, Capital requirement of the borrower, character of the borrower and the conditions on which the lender would agree to offer you a loan. So Collateral is not the one of the four C's that the lender would consider before offering loan to the borrower.