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American Politics  » How To Get A Visa/MasterCard With No Credit Check

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 the

right profile. They arrive at those conclusions by assigning point

values to various items of information that are included either on

your credit application or in a credit report.

Credit card companies like credit scoring systems because as a

large volume creditor, they can replace trained credit personnel

with a relatively few employees who can quickly total number

columns and determine is an applicant's point values add up to the

right score.

Scoring, of course, is done for one reason. A creditor just wants

to know that the odds are high he will get his money back. Scoring

systems are fine for those people who fit right into the right

profile, but what about those who don't but could pay off their

monthly 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 so

that you fit the scoring profile of what a creditor is looking for

in 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 by

one company's scoring system and approved by another. One

creditor's system will give you many points for a good answer, and

totally ignore a question that gives a negative answer. Another

creditor can simply reverse the process.

Keeping in mind that creditors use different scoring systems, we

will list only the most important questions and briefly review how

a response can affect your total score. The following categories

are 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 your

own house, even if it is mortgaged. The worst is: renting an

unfurnished apartment, living with your parents, living in a

trailer or motel.

GEOGRAPHIC LOCATION- Scoring systems are adjusted for differences

in geographic locations. For examples, home ownership may not score

high 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 a

high to low score within each category for different occupations.

Sometimes an employer is scored, instead of the occupation of the

applicant.

AGE-Older is not considered better until you pass age 40. Under 25

to the end of the 30's receive the lowest scores. The rational is

that 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, and

tied down with enormous expenses. This is also the time most people

declare bankruptcy.

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

TELEPHONE-Having a telephone is an indication of stability. Give

yourself more points.

AGE OF AUTOMOBILE- No auto is a low score, but the newer the

vehicle 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 and

savings 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 each

finance company loan.

TWO POWERFUL STRATEGIES THAT CAN GET YOUR APPLICATION APPROVED

Credit checks are requested by banks, lenders, and other creditors

to see if there are negative items in your file. The more negative

items you have, the less your chances of credit will be. As we have

seen, creditors look for stability and reliability in an applicant.

A steady source of income will receive a high score, but even more

important than an income amount is a creditors belief and

perception that you are both willing and able to pay back a debt.

In other words, even if you fail to pass certain criteria or

formulas, your application can still be approved on another level

that will get you the credit you want no matter what a scoring

system 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 what

you want. Basically, there are two ways you can achieve that goal.

1) You can bypass the normal scoring methods that are used by

impressing the person your application that you are sincere,

reliable, stable, and have the ability to make monthly payments on

a loan or credit card account.

2) You can tailor your answers to the applications questions and in

that manner fir into the right scoring mold of what a good credit

risk is, according to the formula they are using.

That doesn't mean you should lie on your application. It simply

means you should be aware that being compatible with certain

stereotypes will work in your favor. remember, a creditor can still

verify the information you list in an application. Still, many

people the truth to put themselves in a favorable position. For

example:

1) Some applicants will list their parent's, a friend's or a

relative's address as their own residence and indicate they have

lived there for years, knowing it probably won't be checked.

2) Provided an applicant has a friend or employer who will go along

with the, he can list a position and salary they don't really

receive. Then when the creditor calls to verify employment the

friend will support what the application has claimed to be true.

3) Another way applicants instantly increase their salary is to set

up their own corporation. After issuing themselves private stock

with an inflated value, they list the stock as part of their

salary.

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 alternative

is to make arrangement with the telephone company and a friend or

relative, to have your name listed with their phone.

2) If you have more than one job, list the one that provides you

with the greatest income.

3) Add your income from all sources and place the total in your

gross income listing. Be prepared to submit a supplement to your

application if they want to verify your income with your employer.

4) Many banks will have a list of "good" and "bad" reasons for

borrowing money. Unless you are applying for a secured loan, you

don't have to spend the money for the reason specified. Good

reasons include home improvement, education, loan to establish

credit, medical treatment for you or your family, and secured loans

for a home, car, boat, and other properties.

"Bad" reasons include loans that create another obligation such as

that created when you borrow money for a down payment and then

have two payments to make; money to pay fine or penalty; money to

consolidate debts, unless you are doing it to get a lower interest

rates; an unnecessary luxury item; money to finance politics; and

money that you loan to someone else. Use a little common sense in

determining what type of loan a creditor may consider bad.

5) Banks use dependent figures to determine what your living costs

are. If you have more than two dependents you should indicate how

they earn their own way or supporting.

6) If you don't own your own home, counteract this by showing how

stable you are. For example, even though you have only rented in a

new location for a relatively short time, you lived at your last

residence for many years. You moved to improve yourself in some

way.

7) Even job changes can be counteracted if each change increased

your salary and improved your position.

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8) Don't ever let a creditor guess as to whether or not you can

afford the extra obligation you are asking for. Make it obvious by

the amount of your income. If you have more income sources than

just your salary, include those amounts.

ALWAYS BE PERSISTENT AND NEVER GIVE UP!

If you complete an application and are still rejected the very

first thing you should do is be persistent and never give up. There

are many reasons why a person may be turned down for credit, but

whatever the reason, you have a legal right to ask the creditor

what their reason was.By knowing what some of the main reasons are

for denying credit you can put yourself in a position whereby you

can make necessary adjustments and avoid negative effects in

advance. If you are turned down, you can then of course concentrate

on those points when you reapply.

When you are dealing with creditors you will know who is the

cooperative sort, and who is not. If an unsecured loan does not

appear imminent, turn the conversation to a secured loan. Then all

you do is deposit an amount into savings account to serve as

collateral for the amount of credit you want to secure. In some

cases the creditor may take personal property as security. If you

go to the creditor and it's clear he has no imagination to deal, go

to another who is willing.

CONSIDER ASKING SOMEONE YOU KNOW TO CO-SIGN

A co-signer is someone who generally has better credit than the

person he is co-signing for. He is also the person a creditor will

go after first in the event you do not pay off your debt. Why?

Because they know that co-signers don't want their credit ratings

ruined and will quickly settle the obligation.

If you are trying to establish or rebuild credit, co-signers can

help you achieve that goal. Naturally you wouldn't need a co-signer

every time you apply for credit. After paying off one obligation

with a co-signer, it should be much easier to acquire more credit

on your own.Co-signers are usually friends or relatives. When you

find someone willing to help they should be offered some

compensation agreeable to both of you. Your application for credit

will be approved primarily on the strength of your co-signer's

credit.

HOW TO GET A VISA OR MASTERCARD

The tips and techniques described in this report are meant to

increase the odds for anyone who is absolutely certain they cannot

get a Visa/Mastercard through normal channels. You should make

every attempt to clean up your credit report by removing negative

items and replacing them with positive items. If you have no credit

at all, open an account at a local department store. After a few

months apply for your bankcard. If you are rejected, find out why

and correct the problem. If that doesn't work, cultivate a

relationship with your banker. Open other accounts that are easier

to obtain. Increase your income. Buy a home. Make yourself a better

credit risk on your credit report. Ask a friend or relative to

co-sign. After paying off that debt, reapply on your own. Or, the

fastest and easiest way to open a Visa or Mastercard account in

your own mane, is through a secured account.

SECURED CREDIT CARDS

Secured Visa and Mastercard bank cards are issued by savings and

loan association throughout the U.S. The lender will ask you to

open a savings account. The funds placed into the savings account

are frozen as long as there is an outstanding balance on the credit

card. The savings account acts as security against non-payment of

charges made against the credit card. Then, in the event a

cardholder doesn't pay, funds from the frozen account can be used

to pay off the debt. This method completely reduces any risk to the

lender.

Requirements are often lowered by lending institutions that have

this program. So if you couldn't obtain a card through your regular

bank, chances are you will receive one through a secured credit

card program without a credit check.

About the Author

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