Financial Literacy Quiz

The 5 C's of Credit

• Capacity

• Credit

• Capital

• Collateral

• Character

The 5 C's of Credit: Capacity

• (GDSR/TDSR) can they afford pay? concerns?

• (Credit Scores) Credit history, any bad debts? How long has client had credit?

• Net worth, Assets and Liabilities

• Available security (house or car) any assets lenders can put a lien on

• Personal Factors, Job & Housing Stability & Banking Relationship

The 5 C's of Credit: Credit

• (GDSR/TDSR) can they afford pay? concerns?

• (Credit Scores) Credit history, any bad debts? How long has client had credit?

• Net worth, Assets and Liabilities

• Available security (house or car) any assets lenders can put a lien on

• Personal Factors, Job & Housing Stability & Banking Relationship

The 5 C's of Credit: Capital

• (GDSR/TDSR) can they afford pay? concerns?

• (Credit Scores) Credit history, any bad debts? How long has client had credit?

• Net worth, Assets and Liabilities

• Available security (house or car) any assets lenders can put a lien on

• Personal Factors, Job & Housing Stability & Banking Relationship

The 5 C's of Credit: Collateral

• (GDSR/TDSR) can they afford pay? concerns?

• (Credit Scores) Credit history, any bad debts? How long has client had credit?

• Net worth, Assets and Liabilities

• Available security (house or car) any assets lenders can put a lien on

• Personal Factors, Job & Housing Stability & Banking Relationship

The 5 C's of Credit: Character

• (GDSR/TDSR) can they afford pay? concerns?

• (Credit Scores) Credit history, any bad debts? How long has client had credit?

• Net worth, Assets and Liabilities

• Available security (house or car) any assets lenders can put a lien on

• Personal Factors, Job & Housing Stability & Banking Relationship

Credit Rating (5 Parts that create your score): What makes up 35%

• Ability to pay debt on time (payment history)

• Credit Utilization (percentage used of available credit: only use 30%)

• Length of credit (how long have you had it)

• Mix of credit (vehicle loan? Line of credit? Mortgage)

• Credit Inquiries (Space it out) multiple applications to something ex) vehicle loans, student loans

Credit Rating (5 Parts that create your score): What makes up 30%

• Ability to pay debt on time (payment history)

• Credit Utilization (percentage used of available credit: only use 30%)

• Length of credit (how long have you had it)

• Mix of credit (vehicle loan? Line of credit? Mortgage)

• Credit Inquiries (Space it out) multiple applications to something ex) vehicle loans, student loans

Credit Rating (5 Parts that create your score): What makes up 15%

• Ability to pay debt on time (payment history)

• Credit Utilization (percentage used of available credit: only use 30%)

• Length of credit (how long have you had it)

• Mix of credit (vehicle loan? Line of credit? Mortgage)

• Credit Inquiries (Space it out) multiple applications to something ex) vehicle loans, student loans

Credit Rating (5 Parts that create your score): What makes up 10%

• Ability to pay debt on time (payment history)

• Credit Utilization (percentage used of available credit: only use 30%)

• Length of credit (how long have you had it)

• Mix of credit (vehicle loan? Line of credit? Mortgage)

• Credit Inquiries (Space it out) multiple applications to something ex) vehicle loans, student loans