1. 5 C’S OF CREDIT
Take Charge

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

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

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

5. 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.

6. 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

7. 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

8. 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