To whom would the term 'character' in the 3 C's of credit typically refer?

The term 'character' in the 3 C's of credit refers specifically to an individual’s payment history, which is a key indicator of their reliability and trustworthiness as a borrower. Lenders assess character by looking at how consistently a person has made payments on their existing debts in the past. A strong payment history shows that the individual is likely to repay future loans on time, making them a more attractive candidate for credit. Factors that contribute to this assessment may include the timeliness of payments, any previous delinquencies, and the overall length of credit history.

In contrast, the other options focus on different aspects of financial assessment. The income level pertains to the capacity to borrow and repay, while the debt-to-income ratio illustrates financial management by comparing debt payments to income. Assets provide an indication of wealth but are not directly indicative of the creditworthiness tied to one's character. Therefore, 'character' is distinctively linked to payment history, which is essential for evaluating any borrowing risk.