| A | B |
|---|
| Character | A responsible attitude towards living up to an agreement |
| Capacity | The ability to pay back a loan with present income |
| Capital | Property possessed that is worth more than debts owed. |
| Conditions | The state of the economy that could impact your ability to pay. |
| Collateral | Property pledged to creditor to assure repayment of a loan. |
| Character | Paying your bills on time |
| Capacity | Borrow $1000 but earn only $500 a month. |
| Capital | My house, car, investments compared to my house loan, car loan and credit card debt. |
| Conditions | My job impacted by the recession. |
| Collateral | Use my electric guitar as property for repayment. |
| Character | paying more than the minimum due. |
| Capacity | Have no income |
| Capital | rent a home, lease my car |
| Conditions | Banks not willing to give loans due to economy |
| Collateral | What you have to give-up if you do not repay |
