Which of the following is true of a credit applicant's character?
A) It reflects a credit applicant's ability to repay his debt obligation.
B) It reflects a credit applicant's past payment history.
C) It reflects the level of liquid assets available with a credit applicant.
D) It reflects any unique conditions surrounding a credit applicant's transaction.

Question

Quizplus · Accepted Answer

A credit applicant's character reflects their past payment history, including their consistency in paying their debts on time, their level of responsibility in managing their credit, and their overall reliability as a borrower. This is one of the five Cs of credit, which also includes capacity, capital, collateral, and conditions. The other answer choices are not necessarily related to a credit applicant's character.

Which of the Following Is True of a Credit Applicant's