When an individual gets into a serious accident or incurs a large sum of medical bills from an illness, it can be hard to repay the debts before the hospital turns the debts over to a collection agency. Once the debts are at a collection agency, they are placed as line items on that individual’s credit report.

Having Credit Problems is the furthest thing from fun. People who find themselves mired in those problems only want to find a way to get out and they want to get out fast.

All Credit Reports are Not Created Equal — This means that your interest rate is somewhat dependent on whichever credit report your lender uses. This may not sound significant but a few points could mean the difference between being classified from the no credit risk category to the some Credit Risk category or even the default credit risk category. This could mean having several percentage points added to your loan.

Your credit score or FICO is very important as you are defined by this ever changing number attached to your name. It can affect your ability to get a loan, your chance of getting a job and even increase the interest rate you pay.

Although 20 points doesn’t seem like much, it can mean a lot when it comes to your credit score. You wouldn’t know it from the consumer side, but there is a world of difference between a credit score of 580 and 600. Your options open up when you increase your credit score by 20 points, and they close up when your credit score decreases — find out how to increase your score by 20 points.