Capacity- Borrowers ability to pay back loan | | Capital- Amount of money a borrower puts down. For example, if a borrower puts down a large down payment, more likely to get mortgage | | Collateral- Helps get a loan, incentive. If loan is not paid, lender can repossess collateral | | Conditions- conditions of the loan, such as APR or principal amount | | Character- borrowers reputation of paying back debts