What aspect does 'Character' refer to in the 3 C's of Credit?

In the context of the 3 C's of Credit—Character, Capacity, and Capital—'Character' specifically refers to your credit history. This aspect reflects your reliability and trustworthiness as a borrower based on your past credit behavior. Lenders assess your credit history to determine how responsibly you have managed previous debts, which includes your payment history, the types of credit you've used, and any adverse information like bankruptcies or foreclosures. A strong credit history indicates a higher likelihood of fulfilling future financial obligations.

In contrast, the other aspects mentioned pertain to different criteria. Current income level relates to the capacity for repayment, while total assets pertain to capital. Therefore, understanding 'Character' is essential for evaluating a borrower's likelihood to repay loans, making it a critical factor in lending decisions.