• All these credit cards can really boost your credit--providing you pay them on time.credit this ? image by blaQ from Fotolia.com
  
  In a bad economy, having a high credit score is almost necessary to be approved for car and bank loans. Depending on how low your credit score is, you may be unable to do even the most basic things, such as set up a payment plan on a new computer or sign a new cellular phone contract. When creditors are looking to give you a line of credit, they look at the Three Cs: Character, Capital and Capacity. Determining where you rank on these three scales can help you determine your chances of being granted a loan.
  
  

Character

• Your "character" is what a creditor looks at when debating whether to give you a line of credit. A few of the things that go into consideration are whether you have used credit before, your ability to pay bills in a timely manner and the stability of both your job and your residency. Someone who moves around frequently is less likely to be granted a line of credit than someone with a stable home.
  
  

Capital

• Creditors look at your "capital" to see what valuable assets you have in your possession. These assets can be as relatively insignificant, such as a computer or items of furniture, or more financially meaningful possessions like real estate property or bank savings. Lenders look at these assets to see what can potentially be taken in the event that you cannot pay your debt--some even call this "C" "Collateral," not "Capital." Collecting assets is the last resort for creditors, and used only with people who do not have a source of income. Those who do have a steady income see their wages garnished until the debt is repaid.
  
  

Capacity

• The third C, "capacity," refers to your ability to repay any debts you incur. Like your "character," "capacity" takes into account your ability to repay your debts in a timely manner as well as to gauge your ability to pay the debts. Creditors look at your current salary, your living expenses, your current debts and any dependents you have. If you have other loan payments going on at the same time, your chances of being approved will increase or decrease significantly based on how well you've been keeping up with the payment.