Before You Use Credit...

Thinking about getting a credit card...well...

The Five C's of Credit

Before you apply to use credit, take a look at the five C's of credit:

  1. Character
  • Are you the type of person that will repay the loan
  • Seek references
  • Past credit history

2. Capacity

  • Your ability to repay the loan
  • Evaluate your ability to cover cost of the loan and other existing debts

3. Capital

  • Evaluate your current net worth

4. Collateral

  • Used to secure loans
  • Item value

5. Credit History

  • Do you pay your bills on time
  • Any bankruptcy declarations in the past

Pros and Cons


  • Can get free gas, airline miles, money back, and donations
  • Can apply for a home
  • Flexibility in spending
  • You can carry less cash


  • Identity theft
  • Large organizations
  • You can over spend
  • Fees if you go over amount limit for card
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