Applying For Credit

Be sure to follow these steps before signing on the dotted line!

1. Ask yourself, "Why?"
2. Do Your Research
3. Know Your Options

When applying for credit, it's important to make sure you read all the fine print so you know exactly what you're getting into. You should also feel free to explore your options - researching different lenders, interest rates, and features will help you make a more informed decision.

Using tools like repayment calculators can also help you make an educated decision.

THE 4 C's of CREDIT

WHAT LENDERS ARE LOOKING FOR WHEN YOU APPLY TO BORROW MONEY

Character

• Financial history
• Credit report/score
• Personal information such as employment history, payment records, etc.

 

Capacity

•  Income & employment
• Pre-existing debt
• Lenders are seeking assurance you will be able to repay what you borrow

 

Capital

• How will you pay back your loan if you lose your income?
• Lenders want to know your net worth (Assets - Debt = Net Worth)
• Value of your assets - savings, investments, etc.

 

Collateral 

• Assets that can be repossessed if you fail to pay back your loan - car, house, etc.
• Some loans require a cosigner or guarantor, who is responsible for the loan if you fail to pay it back.