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Note: Theoretically, if a series of
credit reports is requested on your behalf during a limited
amount of time, your score goes down until time passes without
any inquiries. Changes in the law though have made
"consumer-originating" credit report requests not count so much.
Also, a series of requests in relation to getting a mortgage or
car loan is not treated the same as a number of credit card
requests in a limited time. This is because the credit bureaus,
and lenders, realize that people request their own credit
reports to keep up with what's on them, and smart consumers shop
around for the best mortgage and car loans.
Unsolicited credit card solicitations
in the mail don't count against your credit report, so don't
worry.
The two main components of your credit
score are your payment history and the amounts you owe.
Bankruptcy filings and foreclosures, which can stay on your
credit report for as many as 10 years, can significantly lower
your score. It's never a good idea to take on more credit than
you can handle.
Late payments
work against you. It's extremely important to pay bills on time,
even if it's only the monthly payment.
Don't "max out" your credit lines. Since the size of
the balance on your open accounts is a factor, lower balances
are better.
It's said that by carefully managing your credit, it's
possible to add as much as 50 points per year to your score.
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