Journal 52 You get to build a credit card application but can ONLY ask 3 questions (other than name and SSN). What are your questions and why?

Factors Affecting Credit Worthiness

The 4 C’s Character Capacity Your willingness to repay your debt History of payments How often do you apply for credit Money in the bank Own or rent How long in current house Capacity Your ability to repay your debt Work? For how long? Income vs. Expenses

The 4 C’s Capital Collateral Your total worth Savings Checking Other investments Collateral Property to secure the loan (not always needed) If you fail to re-pay the loan, the bank takes the collateral

Creditors CAN NOT USE age gender race marital status religion They may ask about these things, but can not use them in the decision making process

A B C D Applicant Character Capacity Capital Collateral Approve? Y/N WHY? A B C D