5 C’S OF CREDIT Take Charge

Character Good and Bad Payment History Credit Score Public records, including criminal and courts

Capacity Stable Job History Consistent Pay: seasonal, commissions, hourly, salary bonuses Level of Pay – Is it high enough for the item being purchased?

Collateral Valuable home that is owned in good condition Car that is owned; paid off Valuable Collectables that could be sold; art guns, etc.

Capital Do they have any savings accounts Do they have other investments that are liquid?; mutual funds, stocks, CD’s, and Bonds, etc. Do they have other financial accounts? IRA’s, 401K’s, other retirements, Life Insurance, etc.

Conditions Adverse change in the industry they work in Adverse change in the property to be purchased with the credit Employer announcements or problems Divorce, Child Support Payment, Alimony Pending Lawsuits

Which C? Capacity Character Conditions Capital Collateral Sally is a department store sale person, and is only paid on commission. Bill always pays his Credit Card on time. Fred is being sued because he ran into Randy’s mailbox. Doug has some stock investments worth $5,500. Nick owns his home, and has over $23,000 in equity. Capacity Character Conditions Capital Collateral

More.. Which C? Collateral Character Capital Conditions Capacity Phil owns his 2008 Ford Truck. Jim has had a few late payments for his car loan. Georgia has a life insurance Policy worth $45,000. Karen was recently divorced and has to pay her husband alimony each month. John has worked with the same company for the past 26 years. Collateral Character Capital Conditions Capacity