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Bad Credit? No Credit? Yeah, Its a Problem.
Many companies use the slogan "Bad Credit? No Credit? No
Problem!" The truth is that it is in fact a problem and there is
no easy way to correct it. It takes a lot of time and effort to
obtain credit when you do not have any and even longer to fix bad
credit. The first step to solving these credit problems is to
understand what your credit score means. In doing this, you will
have a better idea of how to fix it.
Creditors use a point system to evaluate your credit. The more
points you have, the better your credit is. These are some
typical scoring methods used by most creditors.
* Age -Under 21= 0 points -24-64 = 2 points -65+ = 0
points
* Marital Status -Single = 0 points -Married = 1 point
-Divorced = 0 points
* Number of Dependants -None = 0 points -1-3 = 1 point -Over 3
= 0 points
* Current Residence -Living with family or friends = 0 points
-Living in an apartment = 1 point -Living in a home that you are
buying = 3 points -Living in a home that is paid for = 4
points
* Previous Residence (Varies with creditors) -0-5 years = 0
points -5 or more = 1 point
* Employment History (Each creditor determines whether the job
is considered skilled, unskilled or professional) -Unskilled job
= 1 point -Skilled job = 2 points -Professional job = 3
points
* Income per Month (Varies with creditors) -$800.00 = 1 point
-$100.00 = 2 points -$1500.00 = 3 points -$1800+ = 4 points
* Current Debt per Month -0 - $300.00 = 1 point -$301.00 -
$500.00 = 2 points -$500 or more = 3 points
* Previous Credit
-A loan in good standing with the agency you are now applying
with = 4-5 points
-A loan in good standing with any other agency = 2-3
points
* Savings or Checking Account Information
$500.00 in a checking or saving that has been open for 6
months or more = 2 points
* Having a phone in your name is worth another 2 points.
When you add these up you should have anywhere from fifteen to
twenty points in order to secure a loan. If one creditor turns
you down, keep trying. Each creditor has a unique set of
guidelines they use to determine whether or not a loan is given.
If you need to boost your credit score, try getting a loan using
a co-signer or a secured loan and pay it back before it is due,
or apply for a credit card.
Timothy Gorman is a successful Webmaster and publisher of
Debt-Relief-Solutions.com. He provides more debt relief,
consolidation and free
credit repair information that you can research in your
pajamas on his website.
MORE RESOURCES:
Credit - Google News
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