In regards to credit, what does capacity mean?

A) Your overall credit line from multiple sources

B) your perceived ability to repay your loans and debt

C) something of value that you back a loan with

D) interest payments that oh have to make each year on debt

Respuesta :

Answer:

The answer is (B) your perceived ability to repay your loans and debt.

Explanation:

Credit capacity refers to the maximum amount of money that an individual or entity can borrow from a loan provider. At an individual level, this amount might be calculated through the person’s current salary, mortgages and other loans the person have, and her or his savings and investments. At an organizational level, considerations might be current and projected revenue and profits, debts that the organization have, as well as past ability to pay the loans that the organizations have received previously.