The
Three C's of Credit
Character:
refers to how a person has handled past
debt obligations: From the credit history and personal background, honesty and
reliability of the borrower to pay credit debts is determined.
Capacity:
refers to how much debt a borrower can
comfortably handle. Income streams are analyzed and any legal obligations
looked into, which could interfere in repayment.
Capital:
refers
to current available assets of the borrower, such as real estate, savings or
investment that could be used to repay debt if income should be
unavailable.
