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Credit reporting agencies collect information about your credit use, such as payment history, the number of accounts you have, the balances on the accounts, and any derogatory information regarding your credit. They then use a statistical program to award points for each factor that might predict how likely you are to repay a new debt. A total number of points is given to create your Credit Score. The higher the score, the better. Typically scores of less than 500 make it difficult to obtain home financing while scores over 700 make it much easier. |
