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Making Good Credit Scores

The credit score is frequently used in establishing the factors when it comes to getting approved for a loan. For those whose credit applications are approved, the credit score report determines the interest rate that is charged to.  The higher the credit score reports you have, the better interest rate is offered to you.  Having a score just two small points below the border can cost a person thousands of dollars.  Increasing your credit score will take time and any effort of quick troubleshoot does not help.  The answer is for the person to practice responsible management of his credit for a longer period of time.  One of the major establishments that determine credit scores is Fair, Isaac and Company or FICO.  It regulates the major credit bureaus which collects information from individuals as their databases in calculating the credit score.  The most apparent way to get the score better is to pay bills or even the minimum payment required on time. The longer period the bills are paid appropriately, the better the credit score will be assigned. If a credit account goes into credit report bureaus, consequently, paying it off will not eliminate the account from a credit report until seven years has passed.  The same goes if you have no credit history; it's more difficult for lenders to decide, so you're more likely to be rejected. Therefore, both for those with bad and no credit histories at all, you need to make a good one.  Being considered a risk is worse than the alternative of having little credit information.


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