Many companies use 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, 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 job is considered skilled, unskilled or professional) -Unskilled job = 1 point -Skilled job = 2 points -Professional job = 3 points