Analysis should include being able to assess the positive and negative effects of
- character
- capacity
- capital
- collateral
- condition.
Process/Skill Questions:
- What factors help a borrower appear trustworthy and credit‑ready to a lender?
- How could weaknesses in any of the five Cs negatively affect someone's ability to get a loan, credit card, or business financing?
- Why is a borrower’s character important in determining creditworthiness?
- What steps can someone take to improve their capacity and capital over time to increase their chances of receiving credit approval?
- How do collateral and economic conditions influence the amount of credit a lender is willing to offer, and at what terms?
- Which of the five Cs is your strongest, and which needs the most improvement?