When evaluating creditworthiness, which factor is NOT one of the five Cs of credit?

The correct answer focuses on the aspect of creditworthiness evaluation that does not fit within the established framework known as the five Cs of credit. These five Cs are Character, Capacity, Capital, Conditions, and Collateral. They are the primary factors lenders consider when assessing a borrower's ability to repay a loan.

Character refers to the borrower's reputation and track record for repaying debts. Capacity evaluates the borrower's ability to repay the loan based on their income and current debts. Capital refers to the borrower's net worth and savings, which can indicate financial stability. Conditions encompass the economic and industry-specific factors that might affect the borrower’s ability to repay the loan.

Discount, however, is not a recognized factor in evaluating creditworthiness. It pertains more to pricing strategies or the reduction in value rather than the borrower’s ability to manage debt. Understanding these concepts helps individuals grasp the criteria that lenders prioritize when determining whether to extend credit, which is crucial for personal financial management.