To Get A Visa/MasterCard With No Credit Check
SHAPING YOUR APPLICATION TO FIT THE RIGHT PEOPLE
Creditors approve credit to those people who most closely match the right profile. They arrive at those conclusions by assigning point values to various items of information that are included either on your credit application or in a credit report.
Credit card companies like credit scoring systems because as a large volume creditor, they can replace trained credit personnel with a relatively few employees who can quickly total number columns and determine is an applicant's point values add up to the right score.
Scoring, of course, is done for one reason. A creditor just wants to know that the odds are high he will get his money back. Scoring systems are fine for those people who fit right into the right profile, but what about those who don't but could pay off their monthly obligations just as easily and reliably as the next person? If you are one of those people who just doesn't "fit the mold," you'll simply have to make a few adjustments in your application so that you fit the scoring profile of what a creditor is looking for in a final total.
HOW CREDITORS RATE AN APPLICATION
The first thing you should know is that every system is different. That in itself can work to your advantage. You could be rejected by one company's scoring system and approved by another. One creditor's system will give you many points for a good answer, and totally ignore a question that gives a negative answer. Another creditor can simply reverse the process.
Keeping in mind that creditors use different scoring systems, we will list only the most important questions and briefly review how a response can affect your total score. The following categories are listed from the highest to lowest awarded each response.
RESIDENCE- The longer you have lived in one place the better. Stability is given high points.
HOME OWNERSHIP- The best possible housing situation is to own your own house, even if it is mortgaged. The worst is: renting an unfurnished apartment, living with your parents, living in a trailer or motel.
GEOGRAPHIC LOCATION- Scoring systems are adjusted for differences in geographic locations. For examples, home ownership may not score high in an area where there is a high incidence of credit problems, reoccurring employee/employer differences, low income, etc.
EMPLOYMENT-The longer you have been on the job the better.
OCCUPATION-Occupations can be divided into many categories with a high to low score within each category for different occupations. Sometimes an employer is scored, instead of the occupation of the applicant.
AGE-Older is not considered better until you pass age 40. Under 25 to the end of the 30's receive the lowest scores. The rational is that people under 25 haven't proven they are a good credit risk. People in their 30's are still raising a family, buying a home, and tied down with enormous expenses. This is also the time most people declare bankruptcy.
INCOME- The higher your income the more points you will receive.
TELEPHONE-Having a telephone is an indication of stability. Give yourself more points.
AGE OF AUTOMOBILE- No auto is a low score, but the newer the vehicle the higher the score.
DEPENDENTS- One to three indicates responsibility and stability. After three, points drop rapidly.
CITIZENSHIP STATUS- Non-citizens receive negative points.
BANK ACCOUNTS- You receive high points if you have a checking and savings account.
IN-HOUSE RECORDS- A good payment record will earn you more points.
CREDIT CARDS- The more major credit cards you have the better.
BANK LOAN- A current bank loan will increase your score.
COMPANY LOANS- You will receive negative points for each finance company loan.
About The Author
For a wide range of personal finance articles, loans, credit cards, and debt reduction resources, visit http://www.ReliefLoans.com.
Reprinted from ArticleCity.com
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