💳 Credit 101: Part 3 Why does credit matter? In Part 2, we shared how your credit score is calculated. Now, let’s talk about why credit matters in the first place. Your credit report and score are used by financial institutions to decide whether to approve you for credit products like loans, mortgages, or credit cards. But credit doesn’t just impact your borrowing—it can also affect employment and rental applications, since some employers and landlords may run a credit check. There are several factors (the 5 Cs) that will impact your qualification: ✅ Credit History – Your track record of repayment helps predict your future reliability. ✅ Character – Based on your stability and credit habits, this shows your intent to repay. ✅ Capacity – Can you afford more credit? Lenders look at your debt-to-income ratio. ✅ Capital – Your net worth (assets minus liabilities) can support your application. ✅ Collateral – Assets you own that can secure the loan (like a vehicle or property). Visit out blog to learn more about the 5 Cs: https://ow.ly/pAHq50Vw69Z #credit #financialliteracy
