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How do lenders and credit card companies decide whether to give me credit?
Lenders and credit card companies look at the "Three Cs": character, capacity and credit, to decide whether you’re a good risk. - Character: You get character points for keeping jobs for reasonable lengths of time and for not moving too often.
- Capacity: The more debt you will be able to repay, based on your income and assets, the more capacity you have.
- Credit: Good credit comes from a track record of paying your bills on time. Creditors may also consider your credit limits and how close to those limits you are.
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