Many people do not understand their credit score or what it means. But the truth is that understanding your credit score is pretty simple especially when you know the basic facts. There are three main bureaus or agencies where you can find out about what your score is. For more information on how to improve your credit score please visit http://creditscorefox.com.

1. Basic Tips on
Understanding your Credit
Score
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2. Basic Tips on Understanding your Credit Score
Many people do not understand their credit score or what
it means. But the truth is that understanding your credit
score is pretty simple especially when you know the basic
facts.
There are three main bureaus or agencies where you can
find out about what your score is. They are
Experian, Equifax and Transunion. It is very important to
find out first the score they are reporting.
Once you have your report, you will see a score that is
somewhere between 300 which is the lowest and 850 as
the highest.
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3. Basic Tips on Understanding your Credit Score
Sometimes referred to as your FICO score, your score
shows how likely it is that you will pay your loan back on
time based on the algorithms that the three credit
agencies created.
If your approval report is between 680 and 700 and over, it
is considered good and lenders will view you as good
credit and are likely to approve your loan. Scores of 700
to 760 allows you to get better interest rates especially on
big loans.
If your approval report is over 760, lenders will consider
you as best credit risk.
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4. Basic Tips on Understanding your Credit Score
According to the Fair and Accurate Credit Transaction Act,
a person is entitled to obtain a free copy of their approval
report each year. Once you know what your score and it is
low, there are some tips to help you improve your rating.
First of all, make sure you pay your bills on time. Missed
or late payments on your bills can actually have a major
negative impact on your approval rating.
The longer you pay all your bills on time, the better your
credits score will be. For instance, if you have an average
credit rating of 700, you can increase your score by up to
20 points if you pay all your bills on time for a month.
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5. Basic Tips on Understanding your Credit Score
If you have credit cards, the balances should be kept low.
A high outstanding or existing debt can actually affect
your rating. As a matter of fact, if you max out your credit
card, your average score can be reduced by 70 points.
Avoid opening several new credit cards that you won't
need. Every new account opened will lower your average
account age and this can lower your score by 10 points.
If you have credit cards, make sure to manage them in a
responsible manner. Generally, having credit cards as well
as installment loans and paying them on time can help
raise your score.
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6. Basic Tips on Understanding your Credit Score
People without it are viewed as higher risk than someone
who was able to manage his or her credit cards
responsibly.
Closing an account won't make it go away. Some people
think it is better to close their account. But closed
accounts will actually show up still on the approval report
and that may be factored into your credit score.
By understanding your credit score, you will be able to
know whether or not you are a good credit and if you
qualify for a loan or low interest loan. To know more go
ahead and visit Credit Score Fox today.
www.creditscorefox.com

7. Basic Tips on
Understanding your Credit
Score
Brought to you by:
www.creditscorefox.com