Debt Relief:Managing Your Credit

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Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your Beacon or credit score. If your score is low, you are considered "high risk" and chances are your request for credit will be denied. The higher your credit score, the more likely you will receive approval. Each time you apply for credit, your score drops. If your credit score is low, there are steps you can take to help manage your credit and increase your score.

1. Apply for a secured card or deposit money in your checking account.
2. Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month.
3. Do not use your credit cards to purchase food. You will pay 10 times more in interest than what one meal would have cost if you had paid cash.
4. If possible, consider transferring the balance of your credit card to a lower interest rate card. If you do this, immediately destroy the card with the high rate and close the account.

Over time, your credit score will improve, and you will qualify for unsecured credit cards on your own.