Choose the letter of the correct answer. Big Cs in Credit

1. Character
2. Capacity
3. Capital
4. Credit
5. Collateral
6. Collateral
7. Irrelevant to a credit decision

Done

1. Barb currently grosses $55,000 annually.
2. The Newsprint Union, of which she is a member, may go on strike next month due to contract negotiation problems.
3. If they go out on strike, Barb could be out for up to two months, during which time she will earn $300/week in strike pay.
4. Barb's home is appraised at $250,000.
5. She has been living at that address for the past 10 years.
6. Two years ago, Barb renewed her mortgage (with a competitor). At that time, the principal was $50,000 financed at 5% amortized over 25 years, with a payment of $381.60 per month. The balance owed is $48,609.
7. Barb estimates heat is $100 per month and taxes are $200.
8. Her home is modestly furnished.
9. All of her credit cards are rated R1.
10. She has $7,500 in savings and $20,000 in
11. RRSP.
12. After taking the loan application, you order a credit bureau check on her, and all information matches what she stated, except that she did not tell you that she had three judgements against her because of credit problems during her marriage. These judgments have been settled but still appear on her record.