Debt Relief:Managing Your Credit: Difference between revisions
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A person has to meet certain criteria to obtain credit. Creditors call upon credit reporting companies such as Experian, Trans Union, and Equifax to find what your credit score is. If your score is low, you are a high risk to loan money and chances are your request will be denied. The higher your credit score, the more likely the loan will be approved. Every time you apply for credit, your score drops. When your score is low, there are steps you can take to help you manage your credit and increase your credit score. Apply for a secured card or deposit money. Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. Over time, your credit score will rise, and you will qualify for unsecured credit cards on your own. | A person has to meet certain criteria to obtain credit. Creditors call upon credit reporting companies such as Experian, Trans Union, and Equifax to find what your credit score is. If your score is low, you are a high risk to loan money and chances are your request will be denied. The higher your credit score, the more likely the loan will be approved. Every time you apply for credit, your score drops. When your score is low, there are steps you can take to help you manage your credit and increase your credit score. Apply for a secured card or deposit money. Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. Do not use your credit cards to purchase food. You will pay 10 times more in interest what one meal would have cost if you had paid cash. 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 rise, and you will qualify for unsecured credit cards on your own. | ||
Revision as of 22:33, 15 November 2004
A person has to meet certain criteria to obtain credit. Creditors call upon credit reporting companies such as Experian, Trans Union, and Equifax to find what your credit score is. If your score is low, you are a high risk to loan money and chances are your request will be denied. The higher your credit score, the more likely the loan will be approved. Every time you apply for credit, your score drops. When your score is low, there are steps you can take to help you manage your credit and increase your credit score. Apply for a secured card or deposit money. Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. Do not use your credit cards to purchase food. You will pay 10 times more in interest what one meal would have cost if you had paid cash. 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 rise, and you will qualify for unsecured credit cards on your own.