five c’s in determining the character, collateral, credit history, conditions, and capacity
Debt refers to any amount that is borrowed from a lender by the borrower. Credit on the other and refers to a short term debt for the expenses that are immediate recurring such as groceries. In such a case, credit refers to a situation whereby an individual purchases goods and pays for them later. It can be beneficial as one can earn the cash back on the purchases or through the redemption of the reward points. However, one may be in a trap of overspending and unable to pay off the credit. Also, debt can entail the substantial sum money which is borrowed and then paid back to the lender over several months. Such liability may be used in purchasing assets such as a house or a car.
My assets are secured by two of my asses that are my vehicles of which I already own one, and the other one is paying for it. in this case, I only have one long term debt of $24,979.82 that is to be paid in 72 months. In the process of applying for the loan, I listed all assets as the loan securities; hence, in case I default, the financial institution might seize my property to pay the debt that I owe them.
Most banks use five c’s in determining the character, collateral, credit history, conditions, and capacity. I have a good credit history as I have no mortgage history and fewer loans. Due to the lack of account delinquencies, I can comfortably afford to pay my debt and to apply for new obligations. Hence y C’s review approves that I cannot be considered deed a default risk.
Tim’s clue in his video discusses debt using a hilarious comedy bit. He Is regarded funny as he is not talented, crude, but he talks the truth. He is offering a comic relief while as he discusses real debt horrors faced by individuals every day. He jokes about debt collectors, but it is not funny to receive a call from debt collectors. It so unfortunate that debt is very common, and most individuals are at risk of being carried over by credits. I like how the skirt ends with a joke of how most companies email their customers the credit cards even if they have not asked them.