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May 20
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A good credit score is necessary if you want to get cheap loans. It is important you do your best to put your credit history in order to protect your credit score.
A credit score is determined by assessing a persons payment history, outstanding debt, number of years as a borrow and number of recent new accounts.
The following four credit tips will help you protect your credit score.
Start Borrowing Early
Start borrowing as early as possible. A person who starts borrowing money in college has an opportunity to develop a good credit history. By the time this person is applying for his/her first morgage he will show experience in his / her ability to borrow and pay bakc money. The important thing is to borrow small amounts that you can service comfortably.
Pay All Your debts In Time.
35% of your credit score is determined by how well you service your debt. Always pay your debt on time.
Dont Over Borrow.
30% of your credit score is determined by your level of debt. The more debt you are carrying the lower your credit score. Never borrwo more than you need.
Dont run away from your debts
If you are carry many credit cards this could indicate you are use one credit card to pay off another credit card. A sign you might be in financial trouble. Deal with all your debts at a time. When you borrow money to pay off an old debt you are only increasing the size of your debt. Asking for more trouble!