4 C's of Credit

Capital

Do you have any valuable assets such as real estate, savings, or investments that could be used to repay credit debts if income is unavailable? What are you assets and net worth? What property do you own that can secure the loan? Do you have a savings account? Do you have investments to use as collateral?

Capacity

Have you been working regularly in an occupation that is likely to provide enough income to support your credit use? Can you repay the loan? Do you have a steady job? What is your salary? How many other loan payments do you have? What are your current living expenses? What are your current debts? How many dependents do you have?

Character

Have you used credit before? Do you pay your bills on time? Do you have a good credit report? Can you provide character references? How long have you lived at your present address? How long have you been at your present job?

Collateral

What if you do not repay the loan? What assets do you have to secure a loan ( a vehicle, your home, or furniture)? Do you have any other assets (bonds or savings)? Creditors look at what kind of property or savings you already have, because these can be offered as collateral to secure the loan. If you fail to repay the loan, the creditor may take whatever you pledged as collateral