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==Managing Your Credit==
==Managing Your Credit==
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as [[Debt Relief:Bibliography#Experian | Experian]], [[Debt Relief:Bibliography#Trans Union | Trans Union]], and [[Debt Relief:Bibliography#Equifax | Equifax]]. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon or credit score |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.
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 your checking account.  
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account.  
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