Q:

What are the three Cs of credit?

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Quick Answer

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.

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Full Answer

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.

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