Think Like A Lender

Have you ever wondered how a lender makes decisions? Who qualifies for credit, and why?

After you apply for credit, all you can do is wait and wonder. But what if you could get inside the lender's head? That might make the waiting easier.

In this section, you'll learn:

How to think like a lender
How credit evaluation works - from the lender's perspective
About the "three C's" of creditworthiness: capacity, collateral and credit
The meaning of credit risk and credit scoring.

Use the links below to get started:

Are You Creditworthy? - Creditors and lenders must assess your "creditworthiness" – your ability to pay back a debt – before issuing credit to you. Creditors want to know that you'll pay them back.
The 3 Cs - Capacity, collateral and credit. Together, these "three C's" help a creditor decide whether to grant you credit.
Credit Risk - Creditors look for ways to help them predict the future behavior of borrowers. They want to minimize their financial risk. Each creditor decides how much credit risk it can afford.


    Fannie Mae
    Freddie Mac
Ginnie Mae


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