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Tuesday, February 24, 2009

Why Should I Chase After A Credit Score Of 700

By Frank Froggatt

Isn't it peculiar that who we are is based on numbers?Whenever you go down to apply for a loan or a personal line of credit you can see the truth revealed in that if you don't possess a high enough number you won't get the money you need.

But what is a credit score? It is an indicator which tells a creditor if you will be able to pay back your debt should your loan be authorized. Credit scores for the most part range from between 340 to 800 and if you score isn't at least around the 700 range you can either count on paying a higher interest rate if it does get authorized or if it is too low being denied altogether.

You might think that this is an unfair arrangement but in truth it is the only possible way that a potential lender can get a sense for who you are and if indeed you are dependable.They pretty much have you over a barrel on this one, it is either you agree to their conditions or you don't get those necessary funds.

There are many Americans in the United States who possess good credit scores. The cause of these good credit scores is the basics of not over spending and paying their bill on time.

Individuals that don't possess a good credit score will need to make life changes in order to make ends meet and getting their debts paid.Probably the first and most intelligent thing that a person in this situation could do is contact their creditors and find out if they could work out a different payment plan that is workable and won't be used against your credit record. If you've had a reasonable credit score and you don't want to see it destroyed then this is probably the best decision for you.

If you have many credit cards, you should cancel the others and only keep one. Only keep the oldest card that you have for it will reflect the best on your credit record.

One of the most common mistakes that new credit users make is to open up new lines of credit that they don't truly need. Try to use common sense when dealing with credit if you can't afford it don't get it.

You should absolutely keep close tabs on your credit score but if it is just under the 700 mark you better make darn sure that everything on it is correct that little difference below the sweet spot can cost you thousands in interest Who knows, you might get lucky and find out that there was an error made. If and when you do find a mistake on your report contact the agency immediately and provide them with all of the pertinent documentation proving your point so that they can look into it and get it removed off of your report

In order to get a copy of your credit report all you need to do is contact one of the three main credit bureaus they are Transunion, Experian, and Equifax. It doesn't really matter which agency you get your report from as all the information should be about the same for each even though they each score a little differently than the others.A lot can happen to your credit over the course of a year so make sure that you check it for accuracy at least once a year so you can be certain of it's accuracy.

A good credit score of 700 and above can get you low interest rates when you need to apply for a loan You can use the money from that low interest loan anyway you wish be it for a debt consolidation, home repairs, or even to purchase a new car. Achieving this score is not an easy task, it takes dedication and hard work, you can achieve it just be wise and use good judgement.

Being the consumer, you must know what your credit score is before you even think of asking for a loan.Knowing this will avoid you the embarrassment of being told that there are issues on your report that are keeping you from being approved for the loan.

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