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Lenders are interested in the Five Cs of Credit when deciding whether to make a loan. Which of the following is not one of the Five Cs?

a.character of the individual
b.capital in the individual's possession
c.capacity of the individual to repay debt
d.consumption history of the individual

User Verhogen
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Final answer:

The correct option that is not one of the Five Cs of Credit is 'consumption history of the individual'. The Five Cs include character, capital, capacity, conditions, and collateral.

Step-by-step explanation:

The Five Cs of Credit refer to criteria that lenders consider when deciding whether to make a loan to an individual. These include the character of the individual, which reflects their trustworthiness and reliability; the capital that the individual possesses, representing their net worth or assets; the capacity of the individual to repay the debt, which is an assessment of their income and financial stability; the conditions of the loan, such as the interest rate and purpose of the loan; and collateral, which are the assets pledged by a borrower to secure the loan.

Therefore, the correct answer to the question is d. consumption history of the individual, as it is not one of the Five Cs of Credit. Consumption history may refer to an individual's spending habits, which is not directly part of the Five Cs lenders traditionally evaluate.

User Kiran Shakya
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