Credit scores range from 300 to 850. The higher they are, the better. They are based on whether you've paid personal loans, car loans, credit cards and other debt in full and on time in the past. You'll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms. |
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Don't Use All Of The Credit Offered |
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Credit scores are also based on how much credit you use compared with how much you're offered. Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it. Occasionally opening new lines of credit can boost your available credit, which also affects your score positively. |
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You may be surprised at the damage even a few late payments will have on your credit score. The easiest way to make a big different in your credit score without altering your spending habits is to pay all of your bills on time. You'll also save more money because you'll be spending less on late fees! |
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Correct Errors On Your Credit Report |
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If you find mistakes on your credit report, write a letter to the credir reporting agency explaining why you believe there is an error. Send documents that support your case and ask that the error be corrected or removed. Also write to the company and ask to be copied on any materials sent to credit reporting agencies. |
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