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HOW TO RATE and ESTABLISH YOUR CREDIT
It is our recommendation that you obtain a copy of your credit report from each of the credit reporting agencies before you apply for any credit. Whether it be
charge cards, an auto loan, or most important a mortgage.
When applying for credit, you may be rejected for having a poor credit history or for not having any credit at all.
Credit evaluations are also done differently when it comes to loans or bank charges, and mortgages.
When you apply for loans or charge cards, it's common practice to evaluate you through a standard credit
application form. Your answers are usually given a point value and rated according to their past experience and other industry provided guidelines.
In order to be granted credit, you have to score a minimum point total to the answers given on the application. (see Credit Scoring Test in Appendix 2)
A credit application is like a class final, so treat it
very seriously. It will determine whether you are approved or denied credit.
Make sure you answer all questions. If there is a question which does not apply to you, answer it with a "n/a" (not applicable). Print the information neatly as not to make it difficult for the reviewer to read it. If they have a hard time reading it, they'll most likely reject it or simply throw it away. It's a good idea to keep a copy, when possible, for reference in filling out future applications.
Take the general purpose scoring test we've provided in Appendix 2, and use it as a guideline for how creditors may decision your application.
If you have been denied credit, you still have
options available to you. The two easiest and straight forward ways to establish credit are through department stores and banks who offer "secured" credit cards.
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