Are You Credit-Worthy?
Your ability to borrow will depend on your credit record — if you have established one — and on what lending agencies traditionally call the “three Cs”:
Character. Do you really intend to repay the debt? Have you shown responsibility in handling your finances in the past?
Capacity. Do you earn enough to repay the debt? How secure is your job? Do you own or rent your living accommodations? How long have you been there?
Collateral. Do you have life insurance, savings, a car, equity in a home, household goods or any other assets that can guarantee repayment?
In addition to the three Cs, some lending agencies use a "credit point" scoring system to help them make up their minds. Points are assigned for such individual characteristics as occupation, stability of employment, residence and credit references.
