Question 3 of 9 How do lenders evaluate if a borrower or cosigner will pay them back? Capacity, collateral , character Callousness, capacity,, character Capacity, criticism character Cadence, collateral calendar

Question

Question 3 of 9 How do lenders evaluate if a borrower or cosigner will pay them back? Capacity, collateral , character Callousness, capacity,, character Capacity, criticism character Cadence, collateral calendar

Answer 1

The correct answer is "Capacity, collateral character".

Answer 2

## Step 1Lenders evaluate if a borrower or cosigner will pay them back based on three main factors: Capacity, Collateral, and Character. These factors are collectively known as the "3 Cs" of credit.## Step 2### **Capacity**This refers to the borrower's ability to repay the loan. Lenders assess this by looking at the borrower's income, employment history, and current level of debt.## Step 3### **Collateral**This is an asset that the borrower offers as a guarantee for the loan. If the borrower defaults on the loan, the lender can seize the collateral.## Step 4### **Character**This refers to the borrower's reputation and trustworthiness. Lenders assess this by looking at the borrower's credit history and references.## Step 5The options "Callousness, capacity, character" and "Cadence, collateral calendar" are not relevant to the context of lending and credit evaluation.## Step 6The option "Capacity, criticism character" is incorrect because "criticism" is not a factor in lending decisions.

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Question 3 of 9 How do lenders evaluate if a borrower or cosigner will pay them back? Capacity, collateral , character Callousness, capacity,, character Capacity, criticism character Cadence, collateral calendar

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