How Does A Creditor Decide: Credit Worthy or Unworthy

I was trolling around the internet as i so often do, in my barely available free time, and I found a site that in some ways says many of the same things that I have touted in this blog. However, at the same time the site, does seem to worship at the alter of the FICO score.

Alot of people have bad credit and find any information useful when it comes to fixing their credit and why bad credit loans can be bad for them.

Bad Credit Loan is a wonderful site with information on how to avoid the "Bad credit loans" that prey on those with bad credit by charging really high interest rates.

The site even warns; as has many other people, including myself, to avoid "Credit Repair" Services.

Beware of so called"credit repair" services that offer to "fix bad credit." So that you don't need a bad credit loan. The only real way to fix bad credit is to change the way you behave with your credit. If your credit blemish is due to an error fix it yourself. Don't use a credit repair services to fix a mistake. There is nothing that a credit repair service can do for you that you can't do on your own for little or no cost at all...

So how does a creditor decide if you are credit worthy?

Nobody wants to have Bad Credit, or have to seek Bad credit loans. By knowing how creditors will evaluate you, not only is the mystery removed from the process, but more importantly you can take positive steps toward improving your "credit report" and increasing your chances of getting your credit approved.

There is a wealth of information on this 2-page website, that is worth a read.

Let me leave you with one more quote from the site:

The following is a list of most of the negative items that can appear on your credit report. They are listed in order of what many creditors would consider as best to worst.

1. Bankruptcy
2. Repossession
3. Late payments
4. Past due and unpaid payments
5. Court judgments
6. Credit Rejections
7. Loan defaults
8. Collections
9. Foreclosure
10. Credit inquiries