A good credit history is now more important than ever.andnbsp; It is important that everyone know his or her credit score.andnbsp; In fact, everyone is entitled to one free credit report a year.andnbsp; Various companies, including Experience Consumer Relations (888-397-3742), can show you your credit profile.andnbsp; Fairly frequently, erroneous information appears on a credit report.

Credit scores usually range between 400 on the low side to 800 on the high side.andnbsp; On rare occasions, these ranges may be exceeded.andnbsp; Additionally, a given score may not be obtainable at all - due to factors like lack of credit history or too few lines of credit.andnbsp; If you know your score, then you can see what the creditors see and have the ability to get a jump-start.andnbsp; Here is a quick breakdown of what a score means to a creditor:

720 and over : Wonderful! You are at the top, entitled to best rates and terms.
700 andndash; 719andnbsp;andnbsp;andnbsp;andnbsp; : Excellent score.andnbsp; You are a very desirable borrower.
680 andndash; 699andnbsp;andnbsp;andnbsp;andnbsp; : Good credit.andnbsp; You should be in strong shape to buy.
660 andndash; 679andnbsp;andnbsp;andnbsp;andnbsp; : Okay credit.andnbsp; Donandrsquo;t look for other exceptions.
640 andndash; 659andnbsp;andnbsp;andnbsp;andnbsp; : Borderline.andnbsp; Youandrsquo;re okay if everything else is strong.
620 andndash; 639andnbsp;andnbsp;andnbsp;andnbsp; : Weak.andnbsp; The rest of your file must be perfect.
600 andndash; 619andnbsp;andnbsp;andnbsp;andnbsp; : Difficult.andnbsp; Needs some work or a special program.
Below 600andnbsp;andnbsp;andnbsp;andnbsp; : Trouble.andnbsp; Try to fix up your credit.

Borrowers with scores over 700 can usually be granted exceptions for other problem areas, like new employment or frequent job changes. These borrowers can get the benefit of extended qualifying ratios to help them obtain a loan.andnbsp; This is a big plus not only in getting approval but also in avoiding the more costly "no income verification" option.

If you would like to improve your credit, there are a few things you should know.andnbsp; An easy way to start is by increasing your credit limits. If the ratio between the amount of credit you owe and the maximum credit limit increases, the computer views it as a plus in scoring. Try to avoid frequent inquiries into your credit history.andnbsp; This can trim your score a few points.andnbsp; The good news is that the negative effect of multiple inquiries only lasts about 30 days.

Keep in mind that you have a right to an error-free credit report.andnbsp; For instance, if your profile shows a late payment without a specific month of delinquency, that item can be removed.andnbsp; This is a great tool, but you do need to check on your credit and make the requisite phone calls.andnbsp; Remember that it may take a couple of months for your credit score to reflect any changes.andnbsp; There are three credit bureaus that report a score, so in essence; you will get three separate credit scores.andnbsp; Most creditors usually take the median of the three scores.

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