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:
 Boston Globe | US August consumer credit falls by $7.88 billion, first decline in ... Forbes, NY - WASHINGTON (Thomson Financial) - Americans unexpectedly decreased their credit borrowing for the first time in more than ten years, mostly cutting back on ... Video: Bernanke: More Economic Pain Ahead Stocks down despite government moves to free up credit Consumers Trim Their Borrowing |
US consumer credit posts worst drop ever National Post, Canada - US consumer credit plummeted by US$7.9-billion dollars in August - its sharpest drop on record, US Federal Reserve figures showed Tuesday. ... US consumer credit declines for first time in over decade Consumer Credit Drops for First Time in 10 Years US Consumer Credit Dropped by the Most on Record (Update1) |
 AFP | Credit cards next in line for tightening Atlanta Journal Constitution, USA - By MARK GONGLOFF As consumers watch their wealth disappear in the markets, some are also at risk of losing one of their last spending lifelines: credit ... Down drops additional 508 points as investors wait to see if ... Consumer debt shrinks for the first time in 10 years US August Consumer Credit Falls at Fastest Pace in Over a Decade |
 Reuters | With Credit Drying Up, Car Buyers Bring Cash New York Times, United States - Tighter credit was a crucial factor in the stunning 26.6-percent drop in September vehicle sales in the United States. In September, sales fell below 1 ... Credit crunch hits auto market's weak link 700 US dealerships could close this year, says head of dealer group Auto dealers looking for the end of the credit crisis tunnel |
 Reuters | Former AIG CEOs back credit default swap regulation Reuters - N: Quote, Profile, Research, Stock Buzz) said they would back regulation of the credit default swaps market in testimony at the US House Oversight and ... Unregulated swaps hastened Wall Street collapse New York insurance regulator calls for regulation of credit ... Greenberg Says Federal Loan to AIG Is Bad Deal |
 The Associated Press | Fear gripping Wall Street Minneapolis Star Tribune, MN - With the flow of credit still tight, investors have fixated on the threat of a serious recession despite increasingly urgent attempts by policymakers to ... Business Highlights A 5-year low Stocks fluctuate after Fed corporate debt plan |
 Thanh Nien Daily | Credit gears of commerce are still jammed Houston Chronicle, United States - By MADLEN READ AP NEW YORK — The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and ... The Bailout, and a Keen Eye on Fixed Income Credit woes: More than home loans Credit still tight after House OK's bailout |
 RTE.ie | Crude Oil Falls as Demand Slumps, Credit Market Turmoil Worsens Bloomberg - Global stock markets have plunged as banks freeze credit lines to investors and companies. ``Demand destruction is prevalent in developed countries with ... Canada energy stocks slump on credit woes, outlook Crude Oil Falls as Worsening Credit Crisis May Curb Fuel Demand |
Corporate America Credit Union and FIMAC Reach Agreement to Offer ... MarketWatch - Based in Birmingham, Alabama, CACU has over $1.4 billion in assets, and serves the financial needs of 174 member credit unions. ... |
 Voice of America | Small US Businesses Feel Pinch of Tightened Credit Voice of America - By Mike O'Sullivan As the US Federal Reserve System announced measures to ease the credit crisis Tuesday, small business owners around the United States say ... |
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