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					Understanding Your Credit Score
All the information that is stored in your credit report is summed up by what is called your credit score, which represents your credit rating. Credit
scores fall into a range of between 0 and 1000, and it is these cedit scores that lenders use to make on-the-spot credit decisions quickly, based on the
number that represents your credit score, which is how lenders will conclude the potential risk.


Credit scores analyze a borrower's credit history taking into account numerous factors such as: the amount of time credit has been established, late
payments, the amount of credit available versus the amount of credit used as well as any negative credit information such as bankruptcies,
charge-offs, collections, etc.


A credit score below 500 is not looked on favourably at all, and consumers with a score below 600 will typically be looking at a fairly high rate for their
credit. Your score will need to be over 700 to get a reasonably low rate, and if you can get your score to about 750 plus you should be able to get the
lowest rates that are available.


Credit scores are extensively used, and if you have a mortgage, a credit card or auto insurance, car loan, or any kind of loan at all, then the rate that
you received was directly related to your credit score.


If your current scores from the credit reporting agencies are different, the most likely reason is that the information that these agencies have on you is
different. And for that reason when your data changes at the credit reporting agency, your new credit score based on your credit report will also
change.


Your chances of being approved for credit by any lender, whether the lender is a bank,,credit card company or any other lender, are increased
significantly if you have a high credit score, as the risk to the lender of incurring a loss is lower than the risk would be if you had a low credit score.


Some-thing to be aware of is that you could have a credit score of around 700, which is quite good, but if you were to miss paying your bills for a single
month, your score could drop down below 600 says one estimator of credit scores, Bankrate. And also if you have more than one credit card your
score will be lower if they are all at their upper limits.


It may seem confusing but your credit score is not based on your credit history, but more-so on the current data. So if you have a credit score that falls
into the 500 / 600 range it is possible to raise your score to the 700 and above range with the application of some clever strategies which can repair
your credit score, thus allowing you to receive a better rate when you next apply for credit.


Because your credit score can result in significant differences in the rate of interest that you will need to pay, a major benefit of a good credit score is it
will allow you to save money by paying a lower rate of interest than you other-wise would if your score was low, and can also help simplify your
financial dealings. If the interest rate you are offered when applying for credit is not good, but your credit score is, then enquire as to why, and if you
are not offered a better rate then shop around until you find one that is acceptable.


About the Author
We can assist you if you would like specific information on how it is possible to repair bad credit and allow us to show you how it is possible to raise
your credit score starting today.


Source: http://www.combatcameras.com/articles

				
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posted:12/21/2008
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