In the good old days, you did not need to have credit to get credit. Everything was regional and banks made the determination based on the type of job you had, the amount of money you had as a down payment, your ties to the region and the city you are in a look at your credit report and a group of people that got together once every three to seven days to go over the loan applications they had received during the week. There were no credit scores that everything depended upon a group of bankers and their evaluation of the total loan application to include the interview with you. Today, financial decisions are score driven. Your credit score is dependent upon what you are attempting to finance, a credit card, a home loan, a car loan, or a store credit card. The final score is weighted depending upon the item Items you're attempting to purchase.

There is a FICO score for revolving debt, a final score for an installment debt, a FICO score for insurance. A credit score can make it easier to determine your creditworthiness. What happens if you do not have a score? What happens to the individual if you have a bankruptcy on your report? How do you overcome those obstacles? This section is devoted to how to build credit, and it is easier today to build credit than it ever has been.

But the key is to balance installment debt with revolving debt without having to purchase anything. You can build credit solely with credit cards, which is revolving debts, you can build them solely with installment debt, such as car loans, but what happens if you do not need a car? We will get into that shortly. The key to building credit is to establish both revolving and installment debt in order to create a balance between the two. Remember the five pillars of your credit score 10% of your credit score is determined in taste. Depending upon the types of credit used, it will only help your score.

If you balance these by having one or two of each two credit cards into installment