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September 02, 2011



Borrowers who have low credit scores present grave risks to the banks who lend them money. For this reason, they must charge those who borrow with low credit scores larger fees and rates in order to compensate for the likely losses they will face by making deals with these borrowers. On the other hand, if you have a high credit score, banks will likely give you favorable loan terms, because there is a very good chance that you will be able to pay back your loan amount according to the terms of the contract you sign.


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