The Five C's of Credit by A. Hancock

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>Character
Character is defined by the way in which you conduct yourself. The way that you portray yourself to others, the morals in which you hold and the ability you possess to define those expectations, whether you uphold those expectations or defy them is irrelevant.

>Capacity
Capacity is your ability to withstand the creditor’s terms and conditions that they have set for you. It is your ability to meet the criteria that has been set out for you.

>Capital
Capital is the amount of assets you have available to your use. This the most important of the Five C’s based on the fact that in reality the creditor mostly only cares about your financial standing.

>Collateral
The amount of value you can put up in the event that you cannot meet the conditions. This is typically a house or a car. Usually something the creditor can take back as something to sell in the event you fail to uphold the condtions.

>Conditions
The terms of the credit loan is set by the creditor. These requirements must be met by the consumer utilizing the line of credit. These conditions are usually regulated by the government or mandated to be within a certain threshold.

Adhere to these principles and you will be respected by creditors everywhere.