First of all, the highest Credit score that exists is 850; conversely, the lowest is 300.  Of course, the majority of people fall between those two extremes, and in fact, the average American Credit score is now about 690, but with the downturn in the economy and unemployment on the rise, it is likely that individual Credit scores will begin to fall, and that means the average Credit score will begin to fall right along with them.

Even though the average American Credit score seems pretty high, at 690, that is really not ìgood enoughî to get the best Credit terms from most lenders.  Most banks and other lenders use the Credit history and Credit score to determine whether or not they will lend you money, whether or not they will require collateral from you, how much interest they will charge you, and how long they will give you to pay back your loan.  Obviously, the better your rating, the better deal you will get at the bank.

Although there are no hard and fast rules that are uniform across the banking industry, most lenders reserve the best rates for people with a score of 720 or better.  That means that if you are just average (690, remember?), you are not likely to qualify for the best interest rates and terms.  Of course, the policies of the different institutions vary, and right now, a lot of bankers are turning down requests for loans for anyone who is well below the average American Credit score, and traditionally, even in the best economy, a score less than about 620 would get you the absolute worst deal.

Some economists predict that in a few years, however, the lenders will be unable to be as particular about whom they offer loans to and will have to be a bit more flexible about terms; the notion revolves around the fact that banks make money by lending it out.  That is a fact; that is why they do it; they donít lend you money just to make you happy.  That being the case, they must lend, and if the average American Credit score drops significantly, banks will have fewer options.  But that time will not come very soon or in the immediate future; right now, everyone expects banks to err on the side of caution, and that is just what they are doing.

When the economy is tough, the banking industry gets more conservative in its policies; if you are in the market for a big-ticket item such as a house or a car now (or will be soon), you should make every effort to keep your Credit history on the up and up so you can stand out as better than average and can get yourself the best deal possible when you need to borrow money.

If you know you have problems with you Credit score the best way to save money is to focus on Credit Repair

TIP 1: Make sure the Debt consolidation company or Credit counseling company youíre working with is reputable. These companies are a dime a dozen all over the Internet. You can also find dozens of different such companies advertised on the television and radio.

Just because you see the ad at a popular and reputable website, or see the ad on the television, doesnít mean the company is a good one! Even rip-off companies need to advertise to draw in customers. Try to talk to someone who has used the company. Investigate them online and with the Better Business Bureau.

TIP 2: If you’re using Credit counseling or a Debt consolidation company, really look at the terms of the agreement. This is one of the tips on Credit card consolidation that can’t be stressed enough. Do the math yourself.

Even if the company is a good one, you shouldnít just take what theyíre saying as gospel. Crunch the numbers and figure out just how much youíre saving. Sometimes what you find can be surprising.

You may be about to sign an agreement that eases your burden today, but increases it tomorrow! If youíre getting a lower monthly payment, make sure that your interest rate is lower also. Otherwise your Debt will accumulate at the same rate as before while youíre paying less.

This might seem like an acceptable solution if your payments are out of control. But it will keep you in Debt longer and making payments longer. If you’re having trouble with your Debt now, think about how youíll be adding to it in the future. How likely is it that making bigger payments in the future to pay off more Debt wonít be a problem?

Most good companies avoid this situation, but you should always make sure youíre not getting in deeper just in care.

TIP 3: This is one of the tips on Credit card consolidation for the do-it-yourselfer. You didnít contact a service but instead decided to consolidate your cards yourself. Read the new card agreement carefully. If you think you might be forced to make a late payment even once, reconsider.

Doing so can send your interest rate skyrocketing and you could end up in deeper Debt than before.

TIP 4: Once you’ve consolidated your Credit cards, stop using the ones that have a zero balance. Use cash only and do your very best not to add any new Credit Debt. If you don’t do this, you’ll end up with the consolidation to pay plus new debts on other cards.
Stop using Credit cards is one of the best tips on Credit card consolidation you can get.

If you need help you may want to look at the Ultimate Debt Guide

Congratulations and welcome to DebtRepairOnline.com

If your goal is to get out of Debt then this site will help you. However, it won’t just happen, you’ll have to take action to make it happen.

This site is designed to get you the information and resources you need to take back your freedom and the only way to do that is to get out of Debt.

So what do you do next?

That’s easy… Simply start by going to the right hand column and look at the “Topics” tab and focus on the “Get Out Of Debt” topic.  There’s a series of articles written to help you jump start your Debt Reduction goals.

Enjoy and take action today!