With a poor credit score you may have been turned away from a job that you are clearly qualified for. You may have been turned down for a credit card or a car loan. The times you have gotten approved it is with a high down payment and an exorbitant interest rate.

If you know how the credit system works then you can use it to your advantage and increase your credit score. This will save you money that can be used for better purposes than paying high interest rates.

When the credit bureaus calculate your credit score they use an algorithm. They plug in your information including payment history, types of accounts, balances, ect., and then a computer calculates 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 do you use the credit system to your advantage? There are two factors that carry more weight than anything else in the credit system equation.

1. Delete negative inaccurate accounts. Derogatory credit items do the most damage to your score and should be removed as soon as possible.

2. Keep an unsecured revolving line of credit. This can be done by almost anyone.

The credit bureaus keep their equation confidential and do not release that information to the public. However upon review of thousands of credit files it has been discovered that having on open unsecured line of credit can be weighed as heavily as removing negative listings.

The reason an unsecured revolving line of credit helps your credit score is because:

1. You are creating positive payment history with every month you pay your bill on time. Also credit bureaus like to see that this account has aged. Meaning it has been an open account for a while.

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.

This credit line will carry more weight if it is unsecured such as a car loan or credit card. However if you are unable to get approval, then you should consider a secured credit card or a secured loan.

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.

It is possible for everyone to achieve a 700 credit score for themselves. So start today and erase the derogatory marks and build positive marks on your credit report.