Understanding Your Credit Score

Credit bureaus consider recent information to be the most important. If your recent credit activity is bad (late payments, a bankruptcy, etc.), then your score will be low. But if you give the bureaus newer and better information by reestablishing credit and paying your bills on time, your score will start to improve regardless of your history.

You need credit to get credit, but this does not mean that you need big credit lines to have 720 credit scores. You can build a great credit score with low lines of credit.

60 Minutes recently reported that 40 million Americans have errors on their credit reports, and fixing these errors isn’t a walk in the park. So protect your time by fixing high-priority errors only—those that can boost a score 10, 25, 50, or even 100 points.

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