3C1

3C1 is a financial term that refers to the three Cs of credit: character, capacity, and collateral. These three factors are used by lenders to assess the creditworthiness of a borrower and determine whether or not to extend credit.

**Character** refers to the borrower's overall financial history and reputation. Lenders will look at factors such as the borrower's past payment history, credit score, and debt-to-income ratio to assess their character.

**Capacity** refers to the borrower's ability to repay the loan. Lenders will look at factors such as the borrower's income, job stability, and other financial obligations to assess their capacity.

**Collateral** refers to assets that the borrower can pledge to secure the loan. Lenders will look at factors such as the value of the collateral, the borrower's ownership of the collateral, and the ease with which the collateral can be liquidated to assess its value.

Lenders will consider all three Cs of credit when making a lending decision. The more favorable a borrower's credit profile, the more likely they are to be approved for a loan.