What does the question "Do you pay your bills on time?" relate to in the 3 C's?

The question "Do you pay your bills on time?" is related to the concept of Character within the 3 C's of credit. Character refers to a borrower's reliability and track record when it comes to repaying debts. This includes their history of paying bills punctually and how responsibly they manage their financial obligations. Lenders assess character to determine the likelihood of a borrower fulfilling their financial commitments.

A consistent history of timely bill payments demonstrates a sense of responsibility and trustworthiness, factors that are critical in credit assessments. This characteristic can significantly influence lending decisions and the terms offered to borrowers, such as interest rates and the amount of credit extended. Thus, the focus on timely bill payments directly reflects a borrower’s character in the eyes of lenders.