It’s important to note that repairing bad credit takes time and there is no quick way to fix a credit score. In fact, out of all of the ways to improve a credit score, quick-fix efforts are the most likely to backfire, so beware of any advice that claims to improve your credit score fast.

There’s no need to waste your time — and some short-term damage to your credit score — by applying for a credit card offer that’s out of your league. This first step is crucial because the information in your credit reports — and the scores that are calculated as a result — will be critical in determining which cards you get and how much you pay for them.

A good FICO score is one that exceeds 700. Any amount above that number is generally sufficient to qualify for the lowest available rates on most types of loans, but it is not a one way ticket to being able to take out extraordinarily large loans-your income will have a more significant effect on that.

A few credit score points can mean the difference between a good mortgage rate, a lousy one or getting a loan at all. But take heart — If errors are dragging down your score, you can get them fixed, just in time for your much-anticipated closing.

A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers.