No Credit, need credit card or loan asap.?

I have brand new credit. Someone told me that I have a good income (which i do), little or no debt (which I have None), i can be approved for an unsecured credit card loan for at least $2500 or more. Can anyone explain to me the application criteria, the ratios they use to access risk so i do get approved.

No Credit, need credit card or loan asap.?

Big D,

For consumer credit, the way it works is that most banks, credit card companies, utlities companies, telecoms companies etc will use a credit bureau to assess you credit.

In short, they use data models referred to as `scorecard`, which are based on behvaoural data modeling using millions of elements of data. Also, there are usually some credit rules on top of them which relect the risk policy of the business you are applying to for credit.

The `score` is built up by allocating points to a number of factors about yourself. Some of the big ones in the US, UK %26amp; Australia are;

* Age

* Time at residence

* Time at job

* Employment

* Payment experience of other creditors

* Any legal filings (bankruptcy, creditor arrangements), court appearances or other claims (eg., petty claims courts)

* Home ownership

* Net worth (assets vs liabilities).

All of these are put into a scorecard and a final score is given.

For example (I am just plucking numbers out of the air here)

%26gt; Time at residence: 0-1yrs = -2 points, 2-5 yrs = 3 points, 6-10yrs = 11 points, 11+yrs = 21 points

%26gt; Age: Under 21 = -3 points; 22-33 = 9 points; 34-41 = 15 points; 42-58 = 23 points; 59+ = 18 points

etc

etc

etc

All of these are then added up to give a final score.

The score will not mean anything itself unless you have the bandings. So a score of `133` means nothing unless you see that 10=Bad and 200=Good etc etc. Agian these are just example numbers to show you how it works.

In terms of what `ratios` are used, these are kept EXTREMELY secret by both the credit bureuax and the individual credit companies that use them. However, most of the bureaux should be able to provide you an example of a `scale` so you can at least see how you compare.

On one point, if you have `no` experience with credit as is typical with under 25%26#039;s then you will get a `NULL` score in some fields which usually gives you a half decent score in that element, effectively giving you the benefit of the doubt in terms of behaviour.

Check out the companies below (depending on where you live - I assume the $$$ you used were for US, Canada or Australia). Contact them to get a copy of your credit report so you can see what they think of you.

Good luck.

Brad M

No Credit, need credit card or loan asap.?

all credit companies will supply you with credit if you owe nothing and don,t live at a blacked address.they supply you with the hole to climb into and give you several free shovels,to keep you digging.your choice.

No Credit, need credit card or loan asap.?

In the uk its hard to get credit if you have no credit history. the lending company has nothing to access you on, so you become a credit risk.

No Credit, need credit card or loan asap.?

You seem to have managed your finances quite well so far. Why on earth do you want to start borrowing money for? OK $2500 is not an enormous amount , but it will still be a lot more than that with the interest added on .. I don%26#039;t think you will have any difficulty in obtaining the loan,, just query the wisdom of doing so.

No Credit, need credit card or loan asap.?

I don%26#039;t refer to them as credit cards, I call them debt cards.

Enough said.