Cryptocurrency Q&A
What are the 3 C's of credit?
What are the 3 C's of credit?
BlockchainWizard
Mon Jan 13 2025
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5 answers
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I'm trying to understand the basics of credit and I've heard about the 3 C's of credit. I want to know what these 3 C's stand for and how they are important in assessing creditworthiness.
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5 answers
Stefano
Wed Jan 15 2025
In the realm of economics, credit holds a significant definition. It is essentially an agreement that is struck between two parties.
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Stefano
Wed Jan 15 2025
Capacity, on the other hand, pertains to the ability of the borrower to repay the credit. This is often assessed through their income and financial stability.
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Tommaso
Wed Jan 15 2025
The three C's of credit are crucial in understanding this concept. These include character, capital (or collateral), and capacity.
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SakuraDance
Wed Jan 15 2025
Character refers to the trustworthiness and reliability of an individual or entity seeking credit. It is a measure of how likely they are to honor their commitments.
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henry_harrison_philosopher
Wed Jan 15 2025
Capital, or collateral, is another vital aspect. This represents the assets or finances that an individual or entity possesses, which can serve as a guarantee for repayment in case of default.
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