Final answer:
The three Cs of credit are character, capacity, and capital, which represent the creditworthiness of an individual or business as assessed by lenders based on reputation, ability to repay, and assets for collateral respectively.
Step-by-step explanation:
The three Cs of credit refer to character, capacity, and capital. These are the main criteria that lenders consider when assessing the creditworthiness of an individual or business. Character refers to the borrower's reputation and track record for repaying debts. Capacity is the borrower's ability to repay the loan, determined by their income and existing debt levels. And capital relates to the wealth or assets the borrower can offer as collateral. When banks conduct credit checks or require a co-signer, they are evaluating these aspects to decide on lending money.