Are You Creditworthy? All About Your Scores And The Five C’s

Consumer credit is not a new invention but the internet and digital technology have enhanced the ability for lenders to know your creditworthiness. Assessing credit is big business.

Before you make big buying decisions, it is a good idea to know if you are creditworthy enough to borrow at low enough interest rates before you actually need to borrow.

Our credit scores are the number generated by FICO’s proprietary formula that put us in a range of good or bad credit.

They also look very closely at five C’s for households (eg mortgages) and business loans. The 5 C’s are The characteristics of credit.


As prospective customers, the bankers want to understand us as well as our credit history. They will profile us as far as our education, job, family, whether we are honest and if we have integrity.


They will look at our budget , how much cash flow we have to pay for expenses, whether we are looking for loan for our household or a business.


They will look at your personal investment in the home or small business you are hoping to get credit for.


Secured loans typically have lower interest rates than unsecured loans. Lenders will look at what the asset or the collateral  you are willing to put up when asking for the loan.


The conditions refer to the composition of the loan (amount of down payment, type of interest rate), and what is the borrower using the loan for.

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