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merchants. court records. the Internal Revenue Service. Question 6. Question : (TCO 3) One of the five Cs that describes a borrower's attitude toward his or her credit obligations is called character. capital. capacity. collateral. conditions. Question 7. Question : (TCO 3) One of the five Cs of lending refers to a borrower's financial ability to meet credit obligations; this is called collateral. character. capital. capacity. conditions. Question 8. Question : (TCO 3) When reviewing your credit file, if you find that there is information that is incorrect, then there are legal remedies available to you. you have no legal remedies. credit bureaus are not required to change it.