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Character. This refers to the personal integrity of the borrower. His determination to pay can be evaluated by his past business record. Character also includes personal habits, attitudes, or vices of the borrower.
Capacity. This has something to do with the managerial ability of the borrower. Could he use wisely and efficiently his loan? Factors like responsibility, maturity and business competence of the borrower determine his capacity to pay.
Capital. This refers to the resources owned by the borrower such as priorities. With such properties, the ability of the borrower to obtain credit has become greater.
Collateral. Usually, the title of the land is required as a security of the loan. This is a safety measure for the payment of the loan. Buildings, machines and other valuable properties are used as collaterals.
Condition. Conditions in the community, industry, or the whole economy affect the ability of borrowers to pay their loans. For example; peace and order, inflation, profitability of a project, etc.
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Are credit card charges deductible for a cash basis taxpayer?
No, credit card charges are not deductible for a cash basis taxpayer because they are considered expenses when the payment is made, not when the charge is incurred.
Does not activating a credit card harm your credit score?
No, but it doesn't help your credit score either. In order to build and maintain your credit score, you need to use credit on a monthly basis.
Why should one check their credit report on a regular basis?
One should check their credit report on a regular basis to help avoid issues with identity theft. In addition, it is the only way to adequately protect and improve a credit rating.
How get unsecured personal loan?
Unsecured loans are on the basis of good credit score since there is no collateral involved. The lender determines your credit worthiness on the basis of your credit score. Since he has no collateral he has to depend on the credit score to decide whether you are a lender's risk or not. If you have good credit score then you can easily get unsecured personal loan from Banks and NBFCs Such as SBI, PNB, Bajaj Finserv etc.
What is the function of the Equal Credit Opportunity Act?
The Equal Credit Opportunity Act prohibits discrimination in credit transactions on the basis of marital status, race, sex, and so forth.
