The Three C’s of Credit

Giant red-colored letter C with snow on top made to represent the three Cs of credit

When applying for a loan, it’s helpful to know what your Loan Officer will be looking at when making his or her decision. There are three areas they will review: Capacity, Collateral, and Character. Capacity Capacity is simply your ability to repay the loan. They will review your monthly income and expenses to determine if…

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How do I find my credit score?

White woman with a short bob haircut and wearing a graphic white t-shirt sits in a meadow with her laptop in her lap and holding her credit card

How do I find out my credit score? Who wants to know it, and what factors influence its change? Submitted by anonymous. A credit score is a representation of how someone managed their debts. It is meant to help creditors understand our financial responsibility. Payments on our loans and balances on our credit cards are…

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Why isn’t my credit score improving?

White woman in a white short sleeve t-shirt sits at her cluttered desk and looks at her laptop screen

I’ve been paying my bills every month on time and nothing changes on Credit Karma. I feel like I’m stalking the app. What should I do? Submitted by Michelle S. Congrats on paying your bills on time! Can we just celebrate that for a moment? What Impacts Your Credit Score Paying your bills will not…

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Do you recommend credit consolidation?

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Do you recommend credit consolidation to improve scores and decrease debt? Submitted by Natasha P. There are two parts to this question, so let’s dig into them separately. Improving Your Credit Score Whenever a financial institution pulls your credit with the purpose of offering you a loan, your score may be affected. Closing a credit…

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How many credit cards should I have?

Professional picture of three credit cards with a wad of cash in the background

“Hi Saundra! As someone who is getting her credit back in order, I want to be wise about applying for credit cards. I have two and working hard to keep them both under 30% utilization. I’m considering applying for one last card. How many credit cards is too many?” Submitted by Laurin O. There are…

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How can I get a loan for a cheap used car?

Dirty red Toyota hatchback with supplies on top overlooks mountains in the distance

Hello, Saundra! How do I go about finding and choosing a certain type of loan (if one exists) that would enable me to quickly buy a cheap used car (around a couple thousand) that I could be able to pay back (with no job/income) with only the money I have saved from last semester’s student…

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6 Steps for When Your Credit Is Denied

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  First, let’s start with the facts. There’s a widespread fallacy that a score determines whether or not you get credit. The truth is that lenders use a variety of factors to make credit decisions. These factors include your FICO scores, but also take into account your income, your employment history, and your credit history.…

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Are there any legit organizations that help with credit repair?

Are there any legit organizations that help with credit repair?? I’m fearful of paying my money to a company that’s not accredited. Submitted by anonymous. The Consumer Finance Protection Bureau (CFPB) is my trusted source for this topic because they offer tips on selecting a reputable organization as well as some important questions to ask.…

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