If you are in the process of repairing your credit report then you know how important your credit score is. This three digit number can determine your lifestyle more than by how much money you earn.

With a low credit score you may be getting turned away from jobs you are qualified for. You also are experiencing difficulty getting approval for car loans or credit cards. When you do receive approval it is with stomach churning interest rates.

However if you can learn how the credit system works then you can use it to your benefit. You can create a higher quality of life for yourself and your family without earning any extra income.

The credit bureaus use a mathematical equation to determine your credit score. The bureau puts your credit information into a computer and the computer spits out your credit score.

This three digit number is the yardstick by which employers, lenders, and others see your creditworthiness. In fact, most new credit transactions a lender never looks at anything other than your credit score. You are judged solely by this number.

How can you use the credit system to your benefit? You need to know there are two pieces of information that are most important to the systems equation.

1. Remove negative accounts. Negative accounts on your credit report will do the most damage to your score and need to be removed.

2. Have an unsecured line of credit in good standing. This is a simple step and everyone can do it.

The credit bureaus equation is kept secret and not released to the public. However after review of thousands of credit files it has been learned that having an open unsecured line of credit is just as important as removing negative items.

The unsecured line of credit will improve your credit score because:

1. A credit line adds a trail of positive payment history. The credit bureaus also like to see an account that is aged.

2. Helps your ratio of debt to available credit. This means the more credit you have that is not being used you score will be higher.

The credit line will help your score the most if it is unsecured. However depending upon where your credit score is you may need to get a secured credit card which guarantees approval for everyone.

A credit line will help build credit however it is most important to remove bad credit items. If you are unable to get approval for new credit immediately and don’t want a secured credit line then remove bad credit and then reapply.

You can achieve a 700 credit score, no matter how bad your credit is today. Work on removing the negative listings and replacing those with positive listings.

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