Credit scoring is system that most creditors and business use to determine if to issue credit cards or loans to an individual. When you apply for credit, creditors reserve the right to administer a full credit check thereby checking your past credit history and your credit report. Various factors help creditors determine if to issue you credit or not.

If you have bad credit or no credit at all you might benefit from repairing your credit or erasing bad credit. This can be sorted out by do it yourself credit repair techniques. Your income bracket, total bills, credit card balances and much more determine if your are a good candidate for credit or not.

The credit score system awards points are awarded for each factor toward your credit worthiness. Using this system, creditors can then offer credit to individuals with the most points.

For example earning over $1,200 per month gives you 15 credit points whereas earning $800-$1000 per month gives you only 12 points. Age is also a factor 21-28 year old gives you 11 points whereas 28-35 gives you only 5 credit points. The age discrepancy stems from the fact that most people in their thirties and forties generally have high amounts of debt already and might already have either bad credit or credit consolidation. Also having a telephone registered in your name and also in the directory earns you more credit points.

In this day and age many more factors contribute to credit score sometimes as many as 15-20 factors can contribute to this, many of these factors are also variable and can be manipulated by the consumer to earn the best credit rating possible.

Credit score cannot legally discriminate on race, sex, national origin as many people would assume but the cumulative factors can exclude many groups of people therefore creating a general trend toward certain groups. In fact some creditors will even use factors like ownership of a car title and the age of the car.

The fact is if you know all the cumulative factors that go toward earning a good credit score you should be able to sort out the variable factors and let them work to your advantage. In trying to increase your credit score it is absolutely necessary that if you have bad credit that you perform a credit dispute.

Each line in your credit report is then analyzed and changed. Do it yourself credit repair is very important to the consumer because it gives consumers a chance to erase bad credit by themselves without any professional help from credit repair companies.