Credit Repair Advice: How to Improve Your Credit Score

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Credit Repair Advice: How to Improve Your Credit Score
Our credit scores determine much about how we live our lives. We
buy practically everything on credit. When applying for a loan, our
good credit scores help us receive reasonable interest rates. In fact,
from landlords, to insurance companies, to utilities, everyone looks
at our credit scores, as they are a reflection of our financial health.
A healthy credit score may determine what various agencies will
charge for their services. Today, even employers check personal
credit scores before offering a job.
Knowing more about our credit scores and the factors affecting
them may help us build a positive credit history.
A creditor may have shared information with one agency only, but
not with the others. Creditors, while checking on our scores, take the average of the three scores from
these three agencies.
Credit scores range between 300 and 850. A score of 680 and above is excellent for obtaining mortgage
financing at low interest rates. A credit score of 621 to 679 is an average score and you would have to
pay a slightly higher rate of interest. A credit score of below 600 makes us potentially unreliable and
harder to obtain credit. When a credit score falls below 600, credit repair steps should be taken
The following are factors affecting credit scores and basic steps to take to maintain an accurate credit
score rating with the credit bureaus:
1. Routinely check payment history and the current credit debt held.
2. Credit history length is a determining score factor. Naturally, the longer a 'good' credit history, the
3. Do not close old or paid off accounts. These show the credit history length and contribute to higher
credit scores.
4. Pay off debts to improve credit scores.
5. On-time payments. Delayed payments appear on credit reports and adversely affect it.
6. An individual's race, sex, age, level of education, or marital status has no bearing on a credit score, nor
does the fact that an application for credit was previously turned down.
Taking care to maintain a high credit rating enables us to receive credit and loans at good rates. Our
credit score is a reflection of how we manage our finances and a determining factor for many aspects of
our lives. Knowing early on how to have a healthy credit history is the best way to avoid bad credit and
limited loan options in the future. Find more information visit on