What Are the Three Cs of Credit?

By Staff WriterLast Updated December 08, 2023

The three C’s of credit are character, capital and capacity. A person’s credit score is the measure of factors that determine his ability to repay his credit. Character, capital and capacity are the common factors that determine that credit score.

Character in credit refers to whether a person has the character qualities to make debt repayment a priority. This is usually assessed based on credit history. Capital refers to whether someone has assets that can be used to repay the debt if his income ceases for a time. Capacity is the ability to repay a debt based on income, other debt and job security.