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Debt Relief: Difference between revisions
→Actions You Could Take to Improve your Score
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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. | 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. | ||
=Actions You Could Take to Improve your Score= | ===Actions You Could Take to Improve your Score=== | ||
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in a checking account. | *Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in a checking account. | ||