The 5 C’s of Credit…credit worthiness

Here is the 5 C’s of credit worthiness:

1. Character What is the history of past repayment of debt.

2. Capacity Can they afford it? See GDS and TDS ratios

3. Capital Really net house (less mortgage, line of credit)

4. Credit Credit bureau and current debt levels

5. Collateral Can the debt be secure against an asset (like a house)


Note: These guys fail rule # 1 Character