(NAPSI)—If someone you didn’t know asked to borrow money from you, what would you need to know before you took the risk of making the loan? Most likely, you would want to know that this person had borrowed money before and had a good track record of repaying it.
Banks and other lenders are no different. They decide whether to loan you money based in part on the history they see on your credit report. They use this information to determine how much of a risk you are—the lower your credit risk, the lower the interest rate they charge you.
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