Debt Relief: Difference between revisions

The most difficult thing to grasp when dealing with management of credit is understanding how one obtains credit in the first place. Usually a creditor follows a checks and balance system of determining if someone has the ability to obtain credit. Specific criteria must then be met in order to obtain credit.  Creditors will then solicit a credit history from credit reporting agency such as [[Debt Relief:Bibliography#Experian | Experian]], [[Debt Relief:Bibliography#Trans Union | Trans Union]], and [[Debt Relief:Bibliography#Equifax | Equifax]]. A number is assigned based on past history or whether or not there is a history at all. That number is called a [[Debt Relief:Definitions#Beacon or credit score |Beacon or credit score]]. If the score is low, then one is considered "high risk" and chances are the request for credit will be denied. The higher the credit score, the more likely one would receive approval. While it may be great to increase the amount of credit to increase the score, each time an applicant applies for credit, the score drops.  

 

*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in a checking account.  

*Do not use credit cards to purchase food. The amount in interest is nearly 10 times more than what one meal would have cost if you had paid cash.  

*If possible, consider transferring the balance of a credit card to a lower interest rate card. If you do this, immediately destroy the card with the high rate and close the account.