What are the five C's of credit and why are each important?
439200
Character — What is the character of the management of the company? What is management's reputation in the industry and the community? Investors want to put their money with those who have impeccable credentials and references. The way you treat your employees and customers, the way you take responsibility, your timeliness in fulfilling your obligations — these are all part of the character question. \n\n This is really about you and your personal leadership. How you lead yourself and conduct both your business and personal life gives the lender a clue about how you are likely to handle leadership as a CEO. It's a banker's responsibility to look at the downside of making a loan. Your character immediately comes into play if there is a business crisis, for example. As small business owners, we place our personal stamp on everything that affects our companies. Often, banks do not even differentiate between us and our businesses. This is one of the reasons why the credit scoring process evolved, with a large component being our personal credit history. \n\nCapacity — What is your company's borrowing history and track record of repayment? How much debt can your company handle? Will you be able to honor the obligation and repay the debt? There are numerous financial benchmarks, such as debt and liquidity ratios, that investors evaluate before advancing funds. Become familiar with the expected pattern in your industry. Some industries can take a higher debt load; others may operate with less liquidity. \n\nCapital — How well-capitalized is your company? How much money have you invested in the business? Investors often want to see that you have a financial commitment and that you have put yourself at risk in the company. Both your company's financial statements and your personal credit are keys to the capital question. If the company is operating with a negative net worth, for example, will you be prepared to add more of your own money? How far will your personal resources support both you and the business as it is growing? If the company has not yet made profits, this may be offset by an excellent customer list and payment history. All of these issues intertwine, and you want to ensure that the bank perceives the business as solid. \n\nConditions — What are the current economic conditions and how does your company fit in? If your business is sensitive to economic downturns, for example, the bank wants a comfort level that you're managing productivity and expenses. What are the trends for your industry, and how does your company fit within them? Are there any economic or political hot potatoes that could negatively impact the growth of your business? \n\nCollateral — While cash flow will nearly always be the primary source of repayment of a loan, bankers look at what they call the secondary source of repayment. Collateral represents assets that the company pledges as an alternate repayment source for the loan. Most collateral is in the form of hard assets, such as real estate and office or manufacturing equipment. Alternatively, your accounts receivable and inventory can be pledged as collateral. \n\nThe collateral issue is a bigger challenge for service businesses, as they have fewer hard assets to pledge. Until your business is proven, you're nearly always going to pledge collateral. If it doesn't come from your business, the bank will look to your personal assets. This clearly has its risks — you don't want to be in a situation where you can lose your house because a business loan has turned sour. If you want to be borrowing from banks or other lenders, you need to think long and hard about how you'll handle this collateral question. \n\nKeep in mind that in evaluating the five C's of credit, investors don't give equal weight to each area. Lenders are cautious, and one weak area could offset all the other strengths you show. For example, if your industry is sensitive to
200426
You need to learn about the cash flow business. If you are having credit problems then personnel development is needed. I hope the link below will help. You will get one on one mentoring to help you succeed.
276145
Apply to different credit cards but don't overdo it.  3-5 should be ok.  Make sure you do not send a late payment, that hurts your credit.  Try to pay more than just the minimum payment.  Don't max the credit cards either.  That won't help your credit.
460810
most companies checking credit to give you either a credit card or cell phone etc would like to see a minimum of about 620, if you have atleats 670 you can get better interest rates on loans and better credit deals.
153857
5 percent and up depends on % down payment and your credit history and income level
10528
Interview mutiple banks and be prepared to have your crdit history reviewed. FICO score. Be clear and concise with wriiten information and do not take no for an answer.
292290
Before I learned how to repair my credit.......ZERO....now that I have cleaned my credit and did it on my own.......let's just say I have more than I need and I use them all and all are at zero balances. Always pay in full. They aren't getting a red cent of interest off of me. If you must really know......5 visa, 10 mastercard, 1 discover, and 5 american express.
259273
CREDIT CARDS\n\nADV:\nMore time to pay\nYou can pay for something immediatly\nCan Bundle all exepences onto one bill\nDAVS\nIntrest- you pay an intrest rate on you payments\nIncourages impulse buying\nIf you bundle your paymnts and don't pay you lose out on alot of thing like:\nWater\nElectricity
483825
* Credit\n* Understanding Real Estate Transacitons\n* Personal Income Tax Preparation\n* Understanding Heathcare Insurance and Billing\n* How to save for retirement. \n\nThese are critical. You are pretty much screwed if you don't have a good grasp on these.
18471
They vary but are usually higher than the first. I'd say somewhere around 10% to 12% is a good ballpark. Of course credit history has something to do with this as well.
210030
well a responsible use of credit would be were you dont max out your credit cards as soon as you activate them and only charge or finance what you can afford to pay back...when selecting a credit card look into annual fees, aprs (annual precentage rates), whether or not it is a fixed apr (fixed meaning it won't change unless you default on the account),and whether or not you have to pay the complete balance of the card off every month...as far as inappropriate uses of credit well maybe financing something for a friend, taking out a loan you know you cant afford to pay back, and taking out multiple credit cards to live above your financial means.
1169169
It means you give the company the money(or collatoral) that you want to have credit for. Then you pay for the interest and fees for having the credit. It is better to go to a loan shark. At least they only break bones and not a credit history!
81582
The credit bureaus don't disclose their exact credit score calculation formulas, so it's hard to directly estimate the impact of the scenarios you laid out.  However, below is the general weighting of the factors that go into a credit score calculation:\n\n35% - An individual’s history of making credit payments on time\n\n30% - The total amount of debt being carried along with available credit\n\n15% - The age of an individual’s open credit lines (more history is better) \n\n10% - The frequency with which someone applies for new credit\n\n10% - Wild card factors such as the types of credit lines
1008053
You may want to consider a "secured" card; this is a credit card that is backed by a savings account of equal value, meaning that if you have $500 in the account, you have $500 of credit. This is the best way to fix/establish credit.
567312
Having a history of good, revolving credit (finger hut, Mervyns, Sears, JC Penney) will help you.  Just use it.  If you buy one thing, once, that won't really help.  I got a card at Mervyns and bought maybe one item every three months.  It helped me.  I had a great credit history but "lack of revolving accounts".
15471
If you can get a very low limit credit card, and be very responsible with it, that will build your credit.  So will getting  a loan that's somehow secured, either with money in your account or a car or other solid collateral.
859739
Normall, they use all three.  The middle score from the three agencies will be used to establish credit worthiness.  There are some banks that will allow you to use the top score from all three, but these are usually on "C" loans and not for Grade A or B loans.