(ARA) – While the number of auto and mortgage loans issued are down, and the effort it takes to get a good loan these days might seem daunting, there are signs that consumer lending is improving with positive economic reports. And even though dollars aren’t handed out as quickly or easily as they were just a few years ago, it is possible for a person to obtain a mortgage or auto loan.

Signs that consumer lending is improving include:

1. Interest rates remain low.
2. Banks are stronger and evaluating loan requests in depth.
3. Inflation is staying low.

Consumers interested in either a mortgage or auto loan should first review their credit scores to determine whether they can afford the loan. A bad credit score could mean denial or paying a lot of extra money. Federal law requires everyone to be able to access a free credit report from each of the three credit agencies once a year. With that credit report information, you can find out if your report has errors or if you have areas where you can work to improve your score.

“Once you have determined that your credit score will assist you in acquiring a mortgage or auto loan, you need to do some research on the loans available,” says Daniel Wesley at CreditLoan.com. “In the mortgage loan area, you need to investigate whether an Adjustable Rate Mortgage works better or a Fixed Rate Mortgage. And in the auto loan area, secured and unsecured loans are available through direct and indirect financing, giving you plenty of options to research to best fit your budget.”

ARMs are good if you plan to live in your house for only a few years because your mortgage rate will be fixed for a set number of years at a lower interest rate. But they can fluctuate quickly once the time period expires, increasing your payments greatly. You may be eligible for a refinance on the mortgage at that time – make sure you research the terms of your ARM closely.

Fixed Rate Mortgages – while higher than typical initial ARMs – are at a historic low, which has made these types of mortgages very popular. They are also popular for families looking to refinance.

Auto loan interest rates for new car purchases also have fallen from a year ago according to interest.com. Some tips for getting an auto loan include:

1. Check your credit report
2. Know what you can afford in payments
3. Determine whether a low-cost option is really the best idea in the long run

Courtesy of ARAcontent

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Anytime you make an application that includes your social security number there is a risk that a credit inquiry will be performed.  So what do these inquiries mean for your credit?  There are some kinds of inquiries that count toward your credit score and there are some that don’t.

The only inquiries that count toward your credit score are those in which you apply for new credit.  This includes application for an auto loan, credit card, or mortgage.  When you make these kinds of applications, you give the lender the authorization to receive a copy of your credit report.

There are also inquiries that do not count against your credit score.  These kinds of inquiries include requests that you make for your own credit report, checks made by businesses that offer goods or services, or inquiries made by a business that you already have credit with.  If a potential employer makes an inquiry this does not count toward your credit score.

Many people are confused into thinking that all inquiries that are included in their credit reports count toward their score.  This is not true.  Only the kinds of inquiries listed above count toward your credit score, even though they are listed on your credit report.

The credit score is calculated using several pieces of information from your credit report.  This includes the number of delinquent accounts, the amount owed on these accounts, the length of credit history, the amount of new credit applications, and the types of credit that you are using.  Credit inquiries fall under the “new credit applications” category and only accounts for 10% of the total credit score.  This is only a small percentage of the total score.  Credit inquiries, when they affect your credit score, can only hurt you a few points.

Inquiries will hurt your credit score in different ways depending on your credit situation, if they even hurt at all.  There are some factors that can cause inquiries to hurt your credit score worse than others.  For example, if you only have a small number of accounts, a short credit history, or delinquent information on your credit report even just one inquiry can cause your credit score to fall a few points.  On the other hand, an inquiry might not have an affect to your credit, if your credit is clean.

When you are applying for a new credit card, you give the creditor permission to check your credit report.  If this inquiry has any affect on your credit at all, it will only be small.  However, if you apply for several credit cards in a relatively short amount of time, this will cause your credit score to drop a few points or more.  When you apply for multiple credit cards, this places multiple inquiries on your credit report.  Lenders associate these requests with risk and are less likely to extend you credit.

Unlike credit card inquiries, multiple auto loan or mortgage inquiries within a short period of time do not affect your credit score.  The developers of the credit score knew that many people shop around for better rates on car loans and mortgages.  For this reason, these inquiries do not take affect until thirty days after the rate shopping period.

There are a lot of factors that come into play when credit inquiries are being made.  You can request a copy of your credit report and score prior to shopping for loans and credit cards.  This will give you a better idea of your financial situation and can help decrease the number of inquiries that are made.

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There is no single “cutoff” score used by all lenders, and there are many additional factors besides your credit score that lenders use to determine whether to give you credit and at what interest rate. So it’s hard to say what a good score is outside of a particular lending situation. For example, one auto lender may offer lower interest rates to people with scores above, say, 680; another lender may use 720, and so on.

There are seven categories that consumers can fall under in regards to their credit report.  They are listed below in order from best to worse:

Excellent

Your credit score is above 800. Lenders and insurers view you as an excellent credit risk. You probably have a long history of using credit responsibly. Your credit report likely contains multiple credits and loan accounts that have all been paid on time for years. You have no public records, such as bankruptcy filings or collection accounts, on your report. Your excellent score means you can qualify for the best deals available.

Very Good

Your credit score is between 750 and 800 and you are considered a very low credit risk. You use your credit accounts responsibly and pay your accounts on time each month. Your credit score qualifies you for some of the lowest rates available.

Good

Your credit score is between 700 and 750. Lenders and insurance companies view you as a low credit risk. You may have had late payments in the past, but all of your accounts are currently paid on time. You also do not have an excessive amount of credit card debt. Your credit score qualifies you for very competitive interest rates and terms, but maybe not the best that a lender has to offer.

Fair

Your credit score is between 650 and 700. You are considered to be a moderate credit risk. You may have older derogatory items on your credit report that are not hurting your score as much as they used to. Your fair credit score could also be the result of higher than normal credit card debt or too many applications for new credit in the past few months.

Bad

Your credit score is between 600 and 650. Lenders and insurance companies will view you as being a high risk. Scores below 650 are considered “subprime” by many lenders. Your credit score could be lower than average because of high amounts of credit card debt or derogatory items on your credit report, such as late payments, collections, or even bankruptcy. Your credit score makes it difficult to be approved for standard credit products at competitive rates and terms. It’s also possible that you could be denied for credit or insurance.

Very Bad

Your credit score is below 600. This means that you are a very high credit risk. Mainstream lenders and insurance companies are not likely to approve your applications. If you are approved, you will be charged much higher interest rates or premiums. Credit scores below 600 are usually caused by late payments, collection accounts, or public records appearing on your credit reports. Excessive applications for new credit or high amounts of credit card debt can also lower your score. It will be difficult for you to obtain new credit without the help of a co-signer or a large down payment.

No Credit

You have no credit score. Lenders and insurers cannot accurately predict your credit risk and by default they consider you to be a high risk. Having no credit is better than having very bad credit, however, and you can be approved for new accounts. You probably have not been using credit cards and loans regularly enough for there to be recent information on your credit reports. You may be trying to open your first account, or you simply have not used any type of credit recently. You can establish your credit by opening a new credit card and using it responsibly. After a few months of use, your credit report should be able to be scored.

Using this criterion should help you in interpreting your credit report.

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The top credit reporting bureaus are Experian, Equifax, and Trans Union in the U.S. Anytime a loan is requested from anyone lenders will check to see what a credit score from one of the big three say. Typically credit scores from a credit history go from 300-900. Most people are in the mid range group, around 700, and the top half of the population is in the 800+. If a score of 550 or below is reported, then it is in the low range, and it is much harder to get a loan.

Most companies in the credit card industry set a standard cut off point for loans of credit. All companies are different though, and when applying for one, or getting an offer for a credit card, the loan amount is based on the credit score. Levels of credit are seen as a status symbol of the type of card that is offered, for example Platinum is the top, and Gold cards are a slightly lower credit card. It does not matter if it is a Platinum Visa, or a Gold Diners Card. Having a great credit score will allow high loan amounts on credit to be granted for personal or even for a company to use in their daily transactions.

It is all automated by computer, so any chance to push the loan limits up, is non-existent. There are no more friendly handshakes that will bargain or deal with anyone needing a loan. That is why it is so important to keep credit as near as perfect as possible. Credit scores determine a lot of factors when applying for a loan. It could mean that an outright rejection will happen, or it might mean that a large deposit or no deposit at all will be needed.

Interest rates are determined too on a credit score. Outrageous interest on a loan will be required if past payments on any debt is not paid out in a timely fashion. Some high-risk credit card expense can be as high as 26%. On the flip side if an average credit rating is reported by one of the three, then an average or loan end interest rate could be offered. Sometimes if a credit score is too bad it will be funded by another source besides the primary lending financial institution. The “paper” might have to visit several different companies before final approval is made.

Lenders at times might not go through all three credit-scoring companies. At times if one report satisfies their requirements for the loan they might only use it. If a loan for a mortgage is wanted, it is sure that the big three will be used for the loan. How they figure the loan amount is up to the individual lender, and it depends on company policy of the investors about how much, and to whom they want to lend the money too. Usually an average is figured from all of the scores on each, and a formula is applied to see if their own special guidelines are met. Again, this just all depends on the lending institutions rules and guidelines.

Remember to keep up to date with credit scores. They fluctuate from day to day, and if payments are kept up to date, then the credit score will allow for higher amounts to be borrowed and paid back. Sometimes there are mistakes that have not been removed from the credit reporting bureaus, and they need to be removed immediately. However, the companies that have loaned money are the ones that need to be contacted after looking over the credit scores. The credit reporting bureaus are not the one that can remove it, only the lending institutions.  Make sure to always check out the credit scores at least two times per year for any personal or business accounts.

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Like it or not, a credit history paints a pretty vivid picture of what sort of person you are.  More than simply stating how much you owe on current credit lines, a credit report also delves into the past to predict how payments will be in the future.  A person who has always paid every single bill on time is a great credit risk; and is likely to continue to stay on top of payments unless otherwise sidetracked by a job loss or perhaps a medical problem.  Conversely, a person whose credit report shows a total disregard for paying bills on any sort of schedule is likely to continue this sort of trend, and will probably not be offered lower interest rates because of this history.  People reading a credit report generally do not have the luxury of knowing a customer on any sort of personal level, and therefore they can only rely on the picture painted by the credit report.

So why maintain a good credit rating? First and foremost, a good credit rating is a product of someone who pays their bills on time and does not overextend their finances.  These two tendencies are great practice to begin with, and although it is nice to have a good credit rating it is even nicer to be squared away financially.  A good credit rating is a perk of a financially healthy lifestyle.

Consumers with good credit ratings will be offered the best interest rates by credit card issuers, and will also have more buying power when it comes to finding the best card to suit their needs.  Many of the premium rewards cards are available only to consumers with excellent credit.  With regards to utilities and home or apartment rentals, people with good credit ratings will often be required to make lower initial deposits or may be able to skip deposits all together since their credit score indicates they are consistently on time with payments.  Some insurance companies extend better car, home, and life insurance rates to folks with high credit scores, although this practice is controversial.  Many consumers are up in arms over insurers even wanting to know personal credit history.

There are several factors that contribute to credit scores.  Information on a credit report is compiled and a corresponding score is declared depending upon timeliness of payments, number of open credit accounts, length of time with creditors, and amount of available credit in relation to balances.  Other factors, such as numbers of inquiries on the credit report have a small impact, but do in fact affect the score to a certain degree.

It is possible to add a comment to the end of your credit report; if you feel as though your credit report is not an accurate depiction of your financial reliability you can contact the three credit bureaus and request a sentence or two of your own wording be added to the report.  This way if all the late payments are due to an illness, or maybe a wayward spouse, you can explain it to whoever is reading the report.  It is important to note, however, that the majority of creditors utilize computerized scoring, so it is unlikely that the explanations added might ever get read.  Other creditors may take the time to read the comments but may not really care why the bills were late, just that they were indeed late. 

The trick to achieving a good credit rating is to consistently pay your bills on time, and to not wrack up a bunch of bills.  The benefits of a high credit score are numerous, and will probably save big bucks in the long run in the form of lower interest rates and better rewards cards.  Even folks with lower credit scores can build up to a high one; it just takes time and tenacity.

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The first issue that will need to be resolved is to know exactly what is in the files of all credit reporting agencies that there is an account with. It is easy to obtain a credit report, and even though it might cost a few dollars per report, typically $12.00 a piece, it is absolutely necessary to get the full picture on what is going for credit history, current and past. Past history is necessary to know because some that are paid in full, or that might need to be changed from delinquent to current, will need to be updated by other financial lending companies. Mistakes and delays do happen, so the most current needs to be in the file. Order one without delay, and see what is in the file, and correct issues that need to be corrected.

Another consideration for raising a credit score is how much is owed. As stated a credit score fluctuates from week to week and day to day and the rating factors that are applied to the score depend on a lot of issues. A comparison and judgment value needs to be made on all debts after a report is obtained from the credit scoring and reporting agencies. By making payments on the debts a credit score will change, but how fast it changes, and how much it goes up, depends on other factors like how long the debt has been outstanding, and how much is owed. Of course one credit report might negate a negative credit score on another report, and can make a score rise at a particular time.

This is very true with the facts about using credit cards to help with other bills that they have incurred. Some people will borrow money from a credit card balance to pay off another type of paper loan, such as a car loan or mortgage, and end up maxing out the cards. It can make the credit score look bad because the limits have been reached on one or more card(s). In general all scores from a reporting agency will make a higher credit score and a more positive impact, if only a few cards have small balances, then a lot of cards with high-end balances on them. Consolidating loans from credit cards onto one card can have a negative impact on the credit score too. Again, it looks like that the max has been reached on one, and the credit limit has just been transferred to another account.

After getting the credit reports, go over each one with a fine-toothed comb, and check out the information that is listed on each one. Sometimes debt information can sneak in that is not supposed to be in there like other people’s debts, and it can affect the score in the reports. Immediately report it to the credit agency that is listed, and give a quick call to the reporting agency, and tell them what is going on. Write a letter to dispute it, and mail it off quickly. The credit bureau has 30 days to send a challenge to other lending institutions that are reported to clear up the matter on the claim. Remember, that silly claims are usually seen as ones on huge amounts of debt that are in the report for a very long time. Do not use debt complaints as a way to get removal of valid debt. It just will not work. On the other hand if a debt does need to be removed the credit agencies need to know because a positive score will be the result.

Finally, by paying your bills on time, and keeping credit card balances low will help keep a positive credit card score up. Using these credit tips will help maintain a healthy credit status, and there will no wondering how the score looks at any time. It is still a good idea to request a report at least once a year, just to make sure that all is current and correct.

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No worries. Here is a clear explanation concerning your credit score. You will learn what a credit score is, what it means, and what a good score is. You will also see some of the most common misconceptions when it comes to your credit score.

Credit Score in a Nutshell

Also called FICO, your credit score is a number that tells prospective creditors of your creditworthiness. Depending on your credit score a creditor may or may not give you the credit you have requested.

Your credit score reflects the risk of default.  If you have a credit score below 600, your credit score is considered “poor.” If you have a credit score above 720, your credit is considered to be “good.” With poor credit, you show a higher risk of defaulting on your credit payments. On the other hand, with good credit, you show lower risk of defaulting on your credit payments. With a higher credit score, many creditors will consider you to be worthy of their credit.

Misconception #1

Many people believe that if you check your credit, your credit score will be dropped. NOT TRUE. It’s okay for you to stop worrying and check your credit occasionally. It’s recommended that you do check your credit occasionally in order to stay on top of mistakes that may be on it. The credit bureaus aren’t perfect and they often make mistakes.

“Soft inquiry” is the name given to a consumer’s inquiry into his or her own credit report. Doing this doesn’t change your credit score one bit. If a lender checks into your credit report, it’s deemed a “hard inquiry” and yes, you will lose a few points on your credit score. But since it’s your own credit report, go ahead and take a peek, there’s no penalty.

Misconception #2

You may have heard many people say that if you have a negative account on your credit report, you can pay it off and it’ll be taken off your report. Again, this is not true. Yes, if you have anything negative on your account you want to take care of it. Whether that means paying it off, making arrangements with the creditor, or filing a dispute, the sooner you handle it, the better.

Paying off a negative debt will show prospective creditors that you have integrity and that you are taking care of your financial obligations. But they will still be able to see that it was negative. The credit bureau does not erase the debt. Instead, they will mark the debt as “paid.” This negative debt will stay on your credit report for 7-10 years after the first date that it was added to your report. Paying off your debt may improve your credit score a little, but when it is completely off your report is when you’ll see a real improvement.

It’s not all bad news though. Depending on the creditor that you’re trying to do business with, they will most likely take into account your recent efforts to pay off the debt that you owed. Your credit score is not the only deciding factor in every case.

Misconception #3

Closing an old account will not raise your credit score. You may have heard other people advising their friends to close up their old accounts and just keep their new, active ones open in order to maintain a higher credit score.

In this case, the older the better. It’s your older accounts that will give you the best boost in your credit score. Since you’ve had them so long, they serve as a voucher that you have been responsible on an ongoing basis.

When you open a new account, there’s no time behind it to back up your credit history. So, if you have too many open accounts and you want to close some, close the newest ones instead. The older accounts are much more valuable for your credit score.

Even if you choose to reduce the limit on your oldest account, it will still benefit you. You can reduce the limit on that account and increase it on a newer account if you’d like. But don’t close that old account; you may actually lose points on your credit score if you do.

Hopefully now you’re clear about your credit score and the top three misconceptions about it. When somebody tries to give you false information about credit make sure you do your own research before you listen to him or her. You may save yourself a headache or two.

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No worries. Here is a clear explanation concerning your credit score. You will learn what a credit score is, what it means, and what a good score is. You will also see some of the most common misconceptions when it comes to your credit score.

Credit Score in a Nutshell

Also called FICO, your credit score is a number that tells prospective creditors of your creditworthiness. Depending on your credit score a creditor may or may not give you the credit you have requested.

Your credit score reflects the risk of default.  If you have a credit score below 600, your credit score is considered “poor.” If you have a credit score above 720, your credit is considered to be “good.” With poor credit, you show a higher risk of defaulting on your credit payments. On the other hand, with good credit, you show lower risk of defaulting on your credit payments. With a higher credit score, many creditors will consider you to be worthy of their credit.

Misconception #1

Many people believe that if you check your credit, your credit score will be dropped. NOT TRUE. It’s okay for you to stop worrying and check your credit occasionally. It’s recommended that you do check your credit occasionally in order to stay on top of mistakes that may be on it. The credit bureaus aren’t perfect and they often make mistakes.

“Soft inquiry” is the name given to a consumer’s inquiry into his or her own credit report. Doing this doesn’t change your credit score one bit. If a lender checks into your credit report, it’s deemed a “hard inquiry” and yes, you will lose a few points on your credit score. But since it’s your own credit report, go ahead and take a peek, there’s no penalty.

Misconception #2

You may have heard many people say that if you have a negative account on your credit report, you can pay it off and it’ll be taken off your report. Again, this is not true. Yes, if you have anything negative on your account you want to take care of it. Whether that means paying it off, making arrangements with the creditor, or filing a dispute, the sooner you handle it, the better.

Paying off a negative debt will show prospective creditors that you have integrity and that you are taking care of your financial obligations. But they will still be able to see that it was negative. The credit bureau does not erase the debt. Instead, they will mark the debt as “paid.” This negative debt will stay on your credit report for 7-10 years after the first date that it was added to your report. Paying off your debt may improve your credit score a little, but when it is completely off your report is when you’ll see a real improvement.

It’s not all bad news though. Depending on the creditor that you’re trying to do business with, they will most likely take into account your recent efforts to pay off the debt that you owed. Your credit score is not the only deciding factor in every case.

Misconception #3

Closing an old account will not raise your credit score. You may have heard other people advising their friends to close up their old accounts and just keep their new, active ones open in order to maintain a higher credit score.

In this case, the older the better. It’s your older accounts that will give you the best boost in your credit score. Since you’ve had them so long, they serve as a voucher that you have been responsible on an ongoing basis.

When you open a new account, there’s no time behind it to back up your credit history. So, if you have too many open accounts and you want to close some, close the newest ones instead. The older accounts are much more valuable for your credit score.

Even if you choose to reduce the limit on your oldest account, it will still benefit you. You can reduce the limit on that account and increase it on a newer account if you’d like. But don’t close that old account; you may actually lose points on your credit score if you do.

Hopefully now you’re clear about your credit score and the top three misconceptions about it. When somebody tries to give you false information about credit make sure you do your own research before you listen to him or her. You may save yourself a headache or two.

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The decisions that banks have on how a person lives, encompasses more than just the balance in their checking account. Credit scores directly come from national reporting agencies with Experian, Equifax, and Trans Union, as well as other smaller state credit reporting agencies to financial institutions. Late payments, judgments, and settlements on any unpaid, or extremely late bills will affect how much credit, or if any credit is offered on loans of any kind. In yesterdays market loans were handled at the local bank, and a friendly handshake determined, along with you savings and checking account balance, how much one could borrow. A personal touch was there, and the bank president could be called on to override an lower level decisions on credit extension.

In today’s world, mass communication and the ability to buy anything from anywhere makes credit and loans much harder to get. As far as credit checks by the different banks and businesses on individuals, most do not know that the credit score will not even be seen by human eyes. It is all automated, and any decision on credit is made in an instant by a computerized mathematical formula. However, how a bank uses that information to deny or grant a loan is totally up to them. They can average a score of just one report, or they can use all three, and use their own statistical model to determine credit worthiness. Some might even just use a top score from one to determine if someone gets credit or is rejected for it. It matters to banks what a credit score is, and how it figures into loans.

If for example, a credit card is wanted a bank will look at where a credit ranking stands. The top is at 800 points, and the low mid range falls between 600, and goes up to about 780 points. This will determine what type of credit card, and the dollar amounts that may be charged on it, or the limit. Mortgages on homes are another area that banks can approve or deny, and the approval is based on the scores too. The scores determine how much of a down payment is needed, or even if a down payment is needed at all. Credit scores determine the interest rate to borrow on money too. A good credit rating will lower interest rates, and a bad one will shoot the rates up to much higher. If the credit rating is too bad, the banks might decide, based on scores that they can not loan out any money at such as big risk.

It might seem unfair that banks judge in such a way, but their job is to make a profit and cut down on default rates, so others will be able to borrow again that are good credit risks. Credit scores even determine what banks will accept a loan application and approve it. It is the source of funding that credit scores determine, and this can limit certain purchases on home, cars, or even business ventures that someone might like to take on.  Investors in banks that back auto insurance companies play a role and it is determined by credit scores too. It is widely held in the insurance circles that coverage of low premiums should be extended to only the best credit score individuals.

There are a lot of other ways that banks use credit scores to determine how a person lives. Other services that are a part of daily living are falling into line with bank and mortgage methods of using credit scores too. Electric companies, phone utilities and landlords are all using credit scores to ensure that customers are reliable when paying their bills.  It all has to do with credit, and the better a credit score is the more options are available on how anyone wants to live in today’s society. 

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In a nutshell the credit score is a number that determines your credit worthiness.  The higher your score, the more worthy you are of credit.  On the other hand, the lower your score, the less worthy of credit you become.  The score is a numerical summary of all the information on your credit report.  Lenders use the credit score in order to determine how much risk is involved with extending you credit or a loan.  The credit score ranges anywhere from 300 to 850, 300 being the lowest possible score.  Most people have a score that is in the 700-800 range.

There are many different factors that are used to determine your credit score.  Some of these factors have a greater impact on the score than others.  The most significant factor for your credit score is the number of delinquent accounts you have.  This accounts for 35% of your credit score.  Each time you are more than thirty days late on a payment creditors report you as being delinquent and your score decreases.  The frequency and length of delinquencies both have an impact on your score.  Creditors see delinquencies as a sign that if you were late before you will be late again.  They want to be sure that you will pay them on time.

Another factor that influences the credit score is the way that you use credit.  This includes the total amount of money you owe and the total amount of credit that you have available to you.  This makes up 30% of the credit score.  Having a lot of debt and maxed out credit cards will hurt your credit score.

The length of your credit history is 15% of the credit score.  Having credit for a longer period of time with the same creditors is favorable.  Creditors assume that if you have had credit for a long time then you are less risky than someone who has only had credit for a short period of time.

The mix of credit that you have accounts for 10%.  If you only have revolving credit cards, it is not as favorable as having revolving credit along with installment credit.  When you have a variety of credit, it shows that you know how to handle money.

The last 10% of the credit score is comes from the number of times that you ask for new credit.  It looks worse to creditors if you have made several requests for credit in a relatively short period of time.  A high number of credit applications looks worse coupled with negative points in other areas, such as delinquent payments.

Credit scoring does not include factors such as age, race, income, education, marital status, a previous decline of credit, length of time at an address, or the ownership of a home.  Many times lenders and creditors will use this information in order to approve or decline an application, but these items do not affect the credit score.

Your credit score is based solely on information that is contained in your credit report.  If your credit report contains inaccurate information, this will be reflected in the credit score.  It is important to check both your credit report and credit score periodically and prior to making any large purchases.  You can improve your credit score by disputing any inaccurate information on your credit report.

The credit score has proved to be an accurate prediction of how likely a person is to pay their bills.  A low credit score indicates that a person is not very likely to pay their bills.  Creditors tend to shy away from applicants with low credit scores.  Improving your credit score is the surest way to receive good terms on credit and loans.

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