We show how to price (digital) credit default options and swaps based on a three-factor defaultable term structure model. Basically, we need three pieces of information: the actual nondefaultable, the defaultable, and the zero-recovery defaultable term structure. The first two pieces can be easily obtained from observable market data using, e.g., the Nelson-Siegel methodology, the latter can be inferred from the other two. We illustrate the whole pricing process, from model specification and parameter estimation to the actual credit derivatives pricing.