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When you're applying for a loan, renting an apartment or applying for a job, your credit score says a lot about your ability to repay debt obligations. Your credit score also determines the interest rate you will get when you borrow money. The lower your credit score, the higher your rate and the more money you will spend over the life of the loan. People with higher credit scores typically qualify for lower interest rates because they've proven their ability to repay debt responsibly.
Several factors go into your credit score, and you benefit when you use credit responsibly. Overusing and underusing credit can damage your score. Here are just a few examples of how you can improve your credit score:
Be smart about handling your money and credit and you’ll score the best deals that will save you more money.