The option that best describes someone's capacity is "their ability to repay a loan." Capacity refers to a borrower's financial ability to repay a loan based on their income and existing financial obligations.
which of the following best describes someone's capacity?
their record of paying bills and paying off debts
their abillity to repay a loan
items attached to a loan that may be seized if they fail to repay
undocumented loans they received from friends and family members
5 answers
in credit ratings, what is character
In credit ratings, character refers to a borrower's perceived reliability and integrity in repaying debts. It is an assessment of an individual's creditworthiness and is often evaluated based on credit history, repayment behavior, and overall responsibility in managing financial obligations. Lenders consider factors such as payment history, the length of credit history, and any past bankruptcies or defaults when determining a borrower's character. It reflects the likelihood that the borrower will honor their debts and commitments.
what is the most important factor that FICO uses to determine your credit score?
amount owed
new credit
payment history
credit mix
amount owed
new credit
payment history
credit mix
The most important factor that FICO uses to determine your credit score is payment history. Payment history accounts for about 35% of your FICO score, making it a critical factor in assessing your creditworthiness. It reflects how reliably you've paid your bills on time, including credit accounts, loans, and other obligations.