Glossary - Simple Solutions Credit Consulting

Credit Vocabulary
Credit and debt related terms that are on used on this site.

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Capacity	Factor in determining creditworthiness. Capacity is assessed by weighing a borrower’s earning ability and the likelihood of continuing income against the amount of debt the borrower carries at the time the application for credit is made. While capacity may be considered in a credit decision, the credit report does not contain information about earning ability or the likelihood of continuing income.

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Glossary V2.0