It is important to note that good or bad credit is based on Negative & Positive debt, and the ability to repay back those debts. Obtaining and keeping good credit is based on how well one manages their debts. Now for someone who has never had a credit card, loan, or any type of credit line, applying, and qualifying for credit is difficult due to them not yet having credit, or credit scores. But don’t be discouraged! This person is usually in a better credit state then one that was previously approved for a credit line, and then later defaulted. So, no credit is essentially better than bad created due to being able to obtain tradelines as an authorized user. Now to those who unfortunately have bad credit, don’t be discouraged as well! As bad credit keeping someone from qualifying for credit is now a thing of the past, as bad credit can now be corrected in a matter of days. Let’s say you were trying to qualify for a home loan, and you were denied due to bad credit scores and a few negative items on your credit report. I as a loan officer can run what is called a what if scenario through a program called a what if simulator and obtain exactly what is needed to increase your scores to a qualifying score and above. We can then work together to do what was requested by the simulator rather it is to pay something down, off or negotiate with a creditor to reduce the balance owed to a more affordable amount. No matter the case, once those items are in order, we can then perform what is called a rapid rescore and adjust your credit scores to reflect the changes in 3-5 business days, making you a now approved borrower. And always remember that you still have credit repair as an option if you cannot afford to do what is requested by the what if simulator. Ok, now for those who have good credit and no worries. When you have open credit accounts in good standings, lenders and all 3 credit bureaus can clearly see that you are not a credit risk and very disciplined with the repayment of your current credit accounts. With a quick debt to income ratio calculation to confirm that you have not maxed out your credit, the odds of approval are basically 100%. Of course, I’m sure that you already knew this, but there may be someone with no credit that may not have!!! Long story short, it is safe to say that good money and debt management Increases the chances and odds of qualifying for whatever loan type that individual is applying for. Learning to keep your revolving accounts under 30% utilization, but most importantly making on time payments is really important and could mean the difference between an immediate or delayed approval.