Character is a reflection of your stability and willingness to repay credit obligations. Have you used credit before and paid it back on time? Is your application completed accurately and honestly? Have you moved or changed jobs often?

Capital is your net worth (the difference between what is yours free and clear and your debts). This includes an in-depth look at your total financial situation, including the value of your home and other assets.

Collateral is an item of value you own that can be promised to the lender. If you don't repay your loan, the lender has the right to take your collateral. By pledging collateral, you can sometimes get a larger loan or lower interest rate. That's because you are more likely to pay back the loan with something you value at stake, so the lender is taking a smaller risk.

Conditions include the national and local economic picture. Are there lots of lay-offs or are employers hiring more people?