Frequently Asked Questions(FAQ)

Why Does the United States Have a Strong Reputation for Creditworthiness?

A common question asked on many financial exams is, why does the United States have a strong reputation for creditworthiness? And the answer is that the United States has the right to tax the wealthiest population on earth. And generally, good taxpayers have strong financial values and take the steps to ensure they can pay their bills on time each month and stay on top of their credit and debts.

How Do You Determine the Credit Worthiness of a Customer?

Creditors look at a variety of factors when determining the creditworthiness of a current or prospective customer. Those factors include things such as character, capacity, capital, conditions, collateral, income, credit score, derogatory information, etc. 

How Do You Evaluate the Creditworthiness of a Company?

The creditworthiness of a company is determined by the five Cs; character, capacity, capital, conditions, and collateral. All of these factors help demonstrate financial responsibility and sound decision-making when it comes to money. Creditors don’t like to see poor payment behaviors, job instability, or derogatory information such as collections accounts.

About the Authors

Ann Bloomquist

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann have been a marketer and a content writer for over 20 years. She have worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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