what are the three cs of credit

What Are The Three Cs Of Credit? We have researched the top 7 cs of credit. Suppose you want 8 cs of credit, then reading this post will help.

Lenders pull your credit report before providing you a loan or credit card. Ever wondered what they try to figure out by checking the credit report? Well, there are 3 C’s of credit that lenders try to figure out. These 3 C’s of Credit are Character, Capital and Capacity based on which the lender decides on lending you. The score ranges from 300-900, and the ideal score to borrow an instant loan is 750.

7 cs of credit

What Are The Three Cs Of Credit

Character

The lender will check your credit report to assess the kind of borrower you were. Whether you were an honest borrower or a difficult one for the lender to deal with. In case you were a difficult borrower, what made you like that. Whether it was due to spending beyond your ability to pay it back. This is called character.

Capital

Your income, savings, property or any collateral is taken into account while calculating your credit capacity by the lender. Greater income empowers your repayment potential and thus makes lenders confident while lending you the money.

Capacity

The capacity to repay the loan is also considered by the lender when they decide to set a loan amount for you. In this, your income, existing obligations and your proposed loans are taken into account to know how much debt you can handle. If your income is high enough to accommodate the existing obligation and the one you are likely to have, your capacity will be seen as good.

How the 3 C’s of Credit Help Both Lenders and Borrowers?

The 3 C’s of credit tell whether you can borrow money from a bank or NBFC without any hassle and how much you can borrow. If all 3 C’s of credit are good, your loan requests are approved quickly. And you can negotiate with the lender to lower your interest rate. But if you get a lump sum amount in the form of a bonus, do use it to prepay the loan. A loan prepayment helps you maintain the credit cycle without affecting your credit score.

Rules to Follow When You Borrow a Loan

  • Don’t Borrow to Invest: It is bad to make an investment by borrowing a loan. For example, equity investments can fetch you greater returns but can be a risky affair. You could so easily lose the borrowed capital you invest here because of their volatile nature. This could make loan payment tough. Whereas, investments in fixed deposits and debt instruments have returns lower than the interest rate chargeable to loans.
  • Compare Interest Rates: Always compare the loan interest rate when you apply for a loan in India. The rate determines the monthly EMI you will pay and the interest you will pay to the lender over the loan tenure. So, choose the lender that offers you the loan at a lower rate so that you can pay the EMI on time and keep interest payments at bay.

How to Ensure Optimum 3 C’s of Credit?

To maintain optimum 3 C’s of credit, you need to do timely payment of your borrowed amount and use the credit limit carefully. Excessive utilization of credit cards can lead to negative impacts on your credit score.

  • Pay on Time: Pay your credit card bills or loan EMIs on or before the due date. Using the NACH, ECS, SI and PDCs payment methods, you can pay your debts and maintain 3 C’s.
  • Credit Utilization: Limit your credit spends to 30% of your limit and use it when there is an emergency.
  • Borrow Mixed Type of Loans: Your credit would be at risk if you borrow more unsecured loans. So, try to borrow both secured and unsecured loans to maintain your credit health. Otherwise, the score will be damaged even by your efforts of regular payment.
  • Do EMI Calculations: Check your EMI whenever you apply for a loan as it gives you an idea of the payment ahead and helps you choose the repayment plan as per your income.
  • Check Credit Score: You should do a soft inquiry for your credit score from any of the online credit bureau to know your credit capacity and eligibility for the loan. In case your credit score is found to be low, you can avoid applying and preventing a possible loan rejection.

8 cs of credit

BEST SITES LIKE ALIEXPRESS FOR ONLINE SHOPPING

AliExpress is a massively popular Chinese online retail service owned by Alibaba Group. It was launched in 2010 and hasn’t stopped its journey to becoming the ‘biggest online marketplace of the world‘ ever-since. AliExpress stands toe-to-toe even with Amazon in terms of buyers worldwide. It offers wholesale goods at direct-to-consumer prices from Chinese sellers.

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It also works as a great dropshipping model for a lot of e-commerce entrepreneurs. Along with a lot of good sides, AliExpress has some cons as well. The biggest problem is the shipping time of AliExpress orders, which is pretty long considering the goods come from China. Also, some orders can be very expensive after shipping charges and taxes.

So, it is a good thing to have some AliExpress alternatives whenever you don’t like its services. That’s why we are telling you about 21 best sites like AliExpress. Some of these websites offer cheaper prices and faster shipping on certain products. And, you can also use them to maintain a nice profit margin for your dropshipping business.

1. LIGHTINTHEBOX

LightInTheBox is the perfect AliExpress alternative as it is also a Chinese e-Store. It sells hot and trending products across the globe. Their products range from phone and electronics to fashion, jewelry, shoes, bags, and many other items. You can find almost anything here at a very cheap price.

The delivery time of LightInTheBox is also similar to AliExpress as their warehouses are located only in China. But, you may get a faster shipping time due to having fewer orders to ship. You can pay for your orders with PayPal, Western Union, or your credit card.

2. WISH

Wish is a widely popular online marketplace where you can buy almost anything. From clothing to footwear, electronics, healthcare items, and many more things, you can get them all for an incredibly cheap price. They are also known to offer great deals and coupons to their new customers.

Their shipping time is also faster than AliExpress as their products come from sellers located in small countries. Wish also provides an advanced rating system that is very helpful for both the consumers as well as sellers. It helps promote good ones.

3. OVERSTOCK

Overstock is a US-based online marketplace. It makes profit by selling wholesale products at a highly cheap price tag. A major portion of their stock is comprised of overstock from the major retailers or their seconds. You can find some really amusing deals here. The shipping time will also be lower as compared to the Chinese marketplaces. You can get your items within a week.

The product range of Overstock is incredible. You can find everything such as clothing, decor, kitchen appliances, and many more items. You can even find furniture and other big home items. So, you can use to fill your house with great stuff at a reduced price.

4. DEALEXTREME (DX)

DealeXtreme, more popularly known as DX, is an amazing online marketplace. The website works in a very similar manner as ‘Wish’ and sells cheap products coming directly from sellers. It has partnered with many small businesses and sells its products to a wide base of audience.

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The shipping time is a problem with DX also because their warehouses are located in China. Apart from this, you can get some really worthy deals on DX. You should always keep an eye on their clearance sales for the best prices.

5. GEARBEST

Gearbest is the perfect AliExpress alternative if you are looking to shop for the latest gadgets or electronic devices. It works with over 5000 Chinese brands and top suppliers to deliver the best products. It has products from top Chinese companies such as Xiaomi, Huawei, Lenovo, and many others. But, it isn’t just an electronic store.

You can also find a massive range of other products as well. The prices available on GearBest are reduced, and you can even reduce them with the available coupons. They also have warehouses in multiple countries. So, you can get faster shipping from the local warehouse.

6. BANGGOOD

BangGood is another Chinese e-commerce platform that provides worldwide shipping of cheap goods. You can find almost anything on this website, from clothing to electronics, and even home items. The prices available are marked down from their original prices. You can also get amazing deals during special clearance sales.

BangGood provides a free $20 coupon to every new user. The shipping time for BangGood orders is faster than AliExpress for certain products. However, the regular shipping time is similar.

7. CHINABRANDS

ChinaBrands is a widely popular Chinese e-Store where you can buy products at wholesale prices. You can find almost anything on this website at a highly affordable price. Their shipping prices are also low but you will get a long shipping time. It is the perfect website for buyers who want the lowest prices but can wait for their orders for at least a month.

Most of the ChinaBrands sellers run their factories from China, and their warehouses are located there only. This is the reason for the considerably long shipping time.

8. BONANZA

Bonanza is a unique American online marketplace where you can find a great range of products. They have over 20 million items from more than 50,000 sellers. It is a growing e-commerce store where even you can sell your items. It is a preferred platform by more than 20,000 entrepreneurial sellers. You can find some really amazing handcrafted items and collectibles here.

For people looking to shop regular items, this store may disappoint you a little. The prices of some items may be a little higher than some Chinese stores. But, the quality provided will be worth it.

21 ALIEXPRESS ALTERNATIVE STORES

Here are 21 AliExpress Alternatives that you can use to shop online.

  1. LightInTheBox
  2. Wish
  3. Overstock
  4. DealXtreme (DX)
  5. GearBest
  6. BangGood
  7. ChinaBrands
  8. Bonanza
  9. DHGate
  10. TinyDeal
  11. Target
  12. MiniInTheBox
  13. GeekBuying
  14. Jet
  15. TomTop
  16. Target
  17. MadeInChina
  18. American Greenwood
  19. Walmart
  20. eBay
  21. Amazon

FINAL TAKE

AliExpress is amazing but it is always good to have options when you are shopping. So, these are the 21 best sites like AliExpress. If you ever feel like you should look somewhere else, these are some stores that you should visit. You can also use these for your dropshipping business if you are an aspiring entrepreneur. Make sure you have a solid plan before beginning.

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