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Article:
How Creditors Measure Your Credit Rating by: Omar M. Omar Creditors will measure your credit rating based on the following three main things. Capacity Collateral Character The three 'C's' show creditors your: 'Capacity' or income to pay the debt 'Collateral' or assets to secure the obligation 'Character' shows your compliance to repay the debt 1. Capacity The very first question is whether you have sufficient income to repay the debt. Creditors will definitely check to see if your income exceeds your expenses so that you ca comfortably pay the debt. A creditor will then want to know: Your income - from all sources Your fixed expenses Your other debts The amount remaining from your total net income, after deducting your fixed monthly expenses and other debts, is your capacity. If your net income is $'3
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