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.