Finimpact

Frequently Asked Questions(FAQ)

What are the 5 Cs of lending?

Lenders score your application by these 5 Cs: capacity, capital, collateral, conditions, and character. In other words, how much you want, how much you have, what you can put up as collateral, the terms of the loan, and your credit history all factor in.

What factors should be considered before granting a loan?

If you are put in the position of being asked to be the lender, be sure you consider the 5 Cs mentioned above. Credit score and the story behind that score are significant factors when you are the person deciding on whether to approve a loan.

What are the three factors when applying for credit?

The three main factors to consider when applying for credit are your credit score, income, and debt level. These factors will heavily impact the amount you can borrow and your interest rate.

About the Authors

Bob Phillips

Written by: Bob Phillips

Financial advisor and content writer

Bob has 15 years of experience as as a financial advisor/trainer/agency manager for several major financial services companies. He earned numerous awards for personal production and agency leadership during his financial career.

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