How 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 theright profile. They arrive at those conclusions by assigning pointvalues to various items of information that are included either onyour credit application or in a credit report.

Credit card companies like credit scoring systems because as alarge volume creditor, they can replace trained credit personnelwith a relatively few employees who can quickly total numbercolumns and determine is an applicant's point values add up to theright score.

Scoring, of course, is done for one reason. A creditor just wantsto know that the odds are high he will get his money back. Scoringsystems are fine for those people who fit right into the rightprofile, but what about those who don't but could pay off theirmonthly 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 sothat you fit the scoring profile of what a creditor is looking forin 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 byone company's scoring system and approved by another. Onecreditor's system will give you many points for a good answer, andtotally ignore a question that gives a negative answer. Anothercreditor can simply reverse the process.

Keeping in mind that creditors use different scoring systems, wewill list only the most important questions and briefly review howa response can affect your total score. The following categoriesare 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 yourown house, even if it is mortgaged. The worst is: renting anunfurnished apartment, living with your parents, living in atrailer or motel.

GEOGRAPHIC LOCATION- Scoring systems are adjusted for differencesin geographic locations. For examples, home ownership may not scorehigh 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 ahigh to low score within each category for different occupations.Sometimes an employer is scored, instead of the occupation of theapplicant.

AGE-Older is not considered better until you pass age 40. Under 25to the end of the 30's receive the lowest scores. The rational isthat 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, andtied down with enormous expenses. This is also the time most peopledeclare bankruptcy.

INCOME- The higher your income the more points you will receive.

TELEPHONE-Having a telephone is an indication of stability. Giveyourself more points.

AGE OF AUTOMOBILE- No auto is a low score, but the newer thevehicle 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 andsavings account.

CREDIT REFERENCES

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.

FINANCE COMPANY LOANS- You will receive negative points for eachfinance company loan.

TWO POWERFUL STRATEGIES THAT CAN GET YOUR APPLICATION APPROVED

Credit checks are requested by banks, lenders, and other creditorsto see if there are negative items in your file. The more negativeitems you have, the less your chances of credit will be. As we haveseen, creditors look for stability and reliability in an applicant.A steady source of income will receive a high score, but even moreimportant than an income amount is a creditors belief andperception that you are both willing and able to pay back a debt.

In other words, even if you fail to pass certain criteria orformulas, your application can still be approved on another levelthat will get you the credit you want no matter what a scoringsystem profile says.

Extending credit to customers is the way the creditors make money.If you convince them you are a good risk they will give you whatyou want. Basically, there are two ways you can achieve that goal.

1) You can bypass the normal scoring methods that are used byimpressing the person your application that you are sincere,reliable, stable, and have the ability to make monthly payments ona loan or credit card account.

2) You can tailor your answers to the applications questions and inthat manner fir into the right scoring mold of what a good creditrisk is, according to the formula they are using.

That doesn't mean you should lie on your application. It simplymeans you should be aware that being compatible with certainstereotypes will work in your favor. remember, a creditor can stillverify the information you list in an application. Still, manypeople the truth to put themselves in a favorable position. Forexample:

1) Some applicants will list their parent's, a friend's or arelative's address as their own residence and indicate they havelived there for years, knowing it probably won't be checked.

2) Provided an applicant has a friend or employer who will go alongwith the, he can list a position and salary they don't reallyreceive. Then when the creditor calls to verify employment thefriend will support what the application has claimed to be true.

3) Another way applicants instantly increase their salary is to setup their own corporation. After issuing themselves private stockwith an inflated value, they list the stock as part of theirsalary.

MORE HOT TIPS ON HOW YOU CAN STACK THE ODDS IN YOUR FAVOR

1) If you don't have a telephone get one installed. The alternativeis to make arrangement with the telephone company and a friend orrelative, to have your name listed with their phone.

2) If you have more than one job, list the one that provides youwith the greatest income.

3) Add your income from all sources and place the total in yourgross income listing. Be prepared to submit a supplement to yourapplication if they want to verify your income with your employer.

4) Many banks will have a list of "good" and "bad" reasons forborrowing money. Unless you are applying for a secured loan, youdon't have to spend the money for the reason specified. Goodreasons include home improvement, education, loan to establishcredit, medical treatment for you or your family, and secured loansfor a home, car, boat, and other properties.

"Bad" reasons include loans that create another obligation such asthat created when you borrow money for a down payment and then have two payments to make; money to pay fine or penalty; money toconsolidate debts, unless you are doing it to get a lower interestrates; an unnecessary luxury item; money to finance politics; andmoney that you loan to someone else. Use a little common sense indetermining what type of loan a creditor may consider bad.

5) Banks use dependent figures to determine what your living costsare. If you have more than two dependents you should indicate howthey earn their own way or supporting.

6) If you don't own your own home, counteract this by showing howstable you are. For example, even though you have only rented in anew location for a relatively short time, you lived at your lastresidence for many years. You moved to improve yourself in someway.

7) Even job changes can be counteracted if each change increasedyour salary and improved your position.

8) Don't ever let a creditor guess as to whether or not you canafford the extra obligation you are asking for. Make it obvious bythe amount of your income. If you have more income sources thanjust your salary, include those amounts.

ALWAYS BE PERSISTENT AND NEVER GIVE UP!

If you complete an application and are still rejected the veryfirst thing you should do is be persistent and never give up. Thereare many reasons why a person may be turned down for credit, butwhatever the reason, you have a legal right to ask the creditorwhat their reason was.By knowing what some of the main reasons arefor denying credit you can put yourself in a position whereby youcan make necessary adjustments and avoid negative effects inadvance. If you are turned down, you can then of course concentrateon those points when you reapply.

When you are dealing with creditors you will know who is thecooperative sort, and who is not. If an unsecured loan does notappear imminent, turn the conversation to a secured loan. Then allyou do is deposit an amount into savings account to serve ascollateral for the amount of credit you want to secure. In somecases the creditor may take personal property as security. If yougo to the creditor and it's clear he has no imagination to deal, goto another who is willing.

CONSIDER ASKING SOMEONE YOU KNOW TO CO-SIGN

A co-signer is someone who generally has better credit than theperson he is co-signing for. He is also the person a creditor willgo after first in the event you do not pay off your debt. Why?Because they know that co-signers don't want their credit ratingsruined and will quickly settle the obligation.

If you are trying to establish or rebuild credit, co-signers canhelp you achieve that goal. Naturally you wouldn't need a co-signerevery time you apply for credit. After paying off one obligationwith a co-signer, it should be much easier to acquire more crediton your own.Co-signers are usually friends or relatives. When youfind someone willing to help they should be offered somecompensation agreeable to both of you. Your application for creditwill be approved primarily on the strength of your co-signer'scredit.

HOW TO GET A VISA OR MASTERCARD

The tips and techniques described in this report are meant toincrease the odds for anyone who is absolutely certain they cannotget a Visa/Mastercard through normal channels. You should makeevery attempt to clean up your credit report by removing negativeitems and replacing them with positive items. If you have no creditat all, open an account at a local department store. After a fewmonths apply for your bankcard. If you are rejected, find out whyand correct the problem. If that doesn't work, cultivate arelationship with your banker. Open other accounts that are easierto obtain. Increase your income. Buy a home. Make yourself a bettercredit risk on your credit report. Ask a friend or relative toco-sign. After paying off that debt, reapply on your own. Or, thefastest and easiest way to open a Visa or Mastercard account inyour own mane, is through a secured account.

SECURED CREDIT CARDS

Secured Visa and Mastercard bank cards are issued by savings andloan association throughout the U.S. The lender will ask you toopen a savings account. The funds placed into the savings accountare frozen as long as there is an outstanding balance on the creditcard. The savings account acts as security against non-payment ofcharges made against the credit card. Then, in the event acardholder doesn't pay, funds from the frozen account can be usedto pay off the debt. This method completely reduces any risk to thelender.

Requirements are often lowered by lending institutions that havethis program. So if you couldn't obtain a card through your regularbank, chances are you will receive one through a secured creditcard program without a credit check.