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The importance of having good credit

If you have never given your credit and credit score a lot of importance, you probably never asked for a loan, invested your money or asked for a change in your margin. credit. If you ever have to do any of these things, your credit score will become very important to you.

Credit gives you access

You see, you can not even qualify for a loan if your credit score is too low. A large number of creditors will base their loan approval process on the applicant's credit score. They can not see your credit history and any changes you have made over the years or even if your credit score has improved from one year to the next. All they see is a number that reflects your current score. If it is not very good then you can bet that you will not be approved for the loan you are requesting.

Or you can be approved, but for a lesser amount. You will find that having a bad credit score affects not only what you qualify for, but also the rates you get and how much money you can borrow. For example, if your credit score is very low, you can only qualify for credit cards that have high interest rates and annual fees. Once you get better credit, however, you can start to qualify for better credit card offers.

If your credit is below average or below what is considered decent, then the credit card offers you receive may not be worthy of acceptance.

Good credit means that creditors are more interested in giving you good deals and giving you a measure of faith. They are more likely to trust you and believe that you will pay off your debts on time, so that they are more likely to give you low interest credit offers and larger loans. There is another world open to you once you have a better credit.

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What affects your score

If you do not know if your score is good or not and you have thought a lot, then you probably do not know exactly what makes your score go down or up. This is a number of factors, in fact. Let's look at it so that you know what you need to watch out for when you spend, invest and make payments.

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<p> Your usable credit is one of the most important factors in determining your credit score. If you have a potential credit of $ 2,000, but only $ 200 is available at the present time because of the amount of debt to be repaid, this credit is not very usable. This can hurt your credit score. Now, if you accumulate a large amount on your credit cards, but pay them at the end of the month, that sounds great on your credit report. If you allow this sum to stay there and you only pay the minimum, then it does not reflect your situation. </p>
<p> Another factor that affects your credit score is the speed of your payments. If you pay late bills, then this can hurt your credit score, while continuing to pay them on time increases your score. </p>
<p> You can also affect your score by asking for a lot of credit over a short period. For example, if you are applying for multiple credit cards or several loans over a six month period, then it may turn to creditors as you are not very smart with your finances, and this can hurt your credit score. It is best to spread out your credit applications over time. </p>
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If your debts go into collections or you go bankrupt, these can hurt your credit score more than anything. You must do what you can to prevent this from happening and protect our credit score at all costs from major events like this one.


These are just a few tips to help you get better credit, and if you have not checked your credit score before or for several years, it's a good idea to have a good credit score. get a free credit report and know where you stand. This can help you plan what you need to do to correct or maintain your credit score.