In regards to credit, what does capacity mean?
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The maximum amount of debt a person or entity can be expected to assume and repay based on financial ability. It is typically based on a formula that factors existing debt payments and net income to arrive at a percent of net income that is available for debt repayment.
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Answer:
Your perceived ability to repay your loans and debt.
Explanation: umm i got it right on my test and thought it would be useful
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