Can you walk me through how you evaluate the 4 Cs of Credit when accessing a borrower's file?

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Evaluating the 4 Cs of Credit involves assessing character, capacity, capital, and collateral to determine a borrower's creditworthiness.

Character: Assess the borrower's credit history and reputation. For example, a strong credit score indicates reliability in repaying debts.
Capacity: Evaluate the borrower's ability to repay the loan by analyzing income, employment stability, and existing debt-to-income ratio.
Capital: Review the borrower's assets and savings. A borrower with significant savings may be seen as less risky, as they have a financial cushion.
Collateral: Determine if the borrower can provide assets to secure the loan. For instance, a mortgage may use the property as collateral.