5 Things You Need To Know About Credit Scores

Your credit score is a number that lenders use to assess your creditworthiness. It's based on your credit history, which includes factors like your payment history, the amount of debt you have, and the length of your credit history. A higher credit score means you're a lower risk to lenders, and you'll be able to qualify for lower interest rates on loans and credit cards.

Here are five things you need to know about credit scores:

* **Your credit score is not a permanent number.** It can change over time, depending on your financial habits.
* **There are three major credit bureaus: Equifax, Experian, and TransUnion.** Each bureau has its own credit scoring system, so your credit score may vary slightly from one bureau to another.
* **You can get a free copy of your credit report from each of the three major credit bureaus once per year.** You can also purchase a copy of your credit score from a credit reporting agency.
* **It's important to monitor your credit score regularly.** You can do this by signing up for a credit monitoring service or by getting a free copy of your credit report from each of the three major credit bureaus.
* **There are a number of things you can do to improve your credit score, such as paying your bills on time, keeping your debt-to-income ratio low, and disputing any errors on your credit report.**

If you have a low credit score, don't despair. There are a number of things you can do to improve it. By following the tips above, you can raise your credit score and get access to lower interest rates on loans and credit cards.

**Here are some additional tips for improving your credit score:**

* **Make all of your payments on time, every time.** This is the most important factor in determining your credit score.
* **Keep your debt-to-income ratio low.** This means that you shouldn't have too much debt relative to your income.
* **Don't apply for too much credit at once.** This can hurt your credit score.
* **Dispute any errors on your credit report.** If you find any errors on your credit report, you should dispute them with the credit bureau.
* **Be patient.** It takes time to build a good credit score. Don't get discouraged if you don't see results immediately. Just keep following the tips above and you will eventually see your credit score improve.

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