How to be creditworthy: the three Cs of credit

You can only get credit if you are creditworthy. Here are some ways in which a bank or a store will decide if you are creditworthy:

check mark Character – will you repay the debt?

From your credit history, does it look like you are honest and can be relied on to pay off debt?
Have you used credit before?
Do you pay your accounts on time?
Do you have a good credit record?
How long have you lived at your present address?
How long have you been at your present job?

Capital – what if you don't repay the debt?

Do you have any valuable assets such as a house, savings or investments that could be used to repay debts if you cannot pay it from your income?
What property do you own that can secure the loan?
Do you have a savings account?
Do you have investments to use as surety?

Capacity – can you repay the debt?

Have you been working regularly in a job that is likely to provide enough income to repay your debt?
Do you have a permanent 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?