1. 5 C’s of Credit

2. 5 C’s of credit Character Capacity Capital Collateral Credit History
Credit Rating: A measure of a person’s ability and willingness to make payments on time.

3. Character Will you repay the loan? Are you trustworthy
Have you had credit before
How long have you lived at your address?
Current job? How long?

4. Capacity
Can you repay the loan?
Sources of income?
Current debts?

5. Capital
What are your assets and net worth?

6. Collateral
What if you don’t repay the loan?

7. Credit History What is your credit history?
Do you pay your bills on time?
Have you filed for bankruptcy?