The beginner's guide to credit scores: How to understand and improve your credit score

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The beginner's guide to credit scores: How to understand and improve your credit score.

A credit limit is the maximum amount of money that can be charged to a credit card. Credit limit may also be known as a line of credit, credit line or spending limit.A credit report is an aggregation of your credit history. Credit reports include detailed information on credit accounts, such as payment history, balances, account opening date and more. The information from a credit report is summed up in a credit score. A credit score is a three-digit number that represents your creditworthiness.

If you have a bad or fair score, there are straightforward steps you can take to improve it. It's not always an easy process, but it is doable. And the payoff is immense, from lower APRs to better rewards programs, which makes the work all that much more worthwhile.

 

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