 TITLE: How a Good Credit Score Could Help You Save on Home Improvement Costs CONTENT: Types of Loans for Home Improvement Projects\n--------------------------------------------\nIf you have a good credit score and are considering taking out a loan for a home improvement project, you'll probably have several borrowing options:\n*   **0% APR credit card**: If you have good enough credit, you could get approved for a credit card with an introductory 0% annual percentage rate (APR) offer on new purchases. This will allow you to make purchases and pay no interest for a set period of time. Depending on how much you spend with the card, this savings could be considerable. Read the fine print, though, as the terms and conditions can vary depending on the offer. Make sure the 0% APR includes new purchases, for example, and not just transfers.\n*   **Personal loan**: A good credit score could also make you eligible for a lower interest rate on a personal loan. Personal loans can be used for home improvement costs, and you may even find some personal loans marketed as home improvement loans. Unlike a credit card, which is a type of revolving debt, a personal loan is a type of installment debt, meaning you'll be issued lump sum you'll pay back in fixed installments over a set period of time.\n*   **Home equity line of credit (HELOC)**: A HELOC allows you to borrow against the equity you have in your home. A HELOC typically allows you to borrow up to 85% of your equity, so if you have $100,000 of equity in your home, you may get a credit line for up to $85,000 if approved. HELOCs are convenient for home improvement projects as they give you a line of credit that you can use as you wish, similar to a credit card. This allows you to spend as little as you want, lowering the amount of interest you have to pay back. Lenders typically want to see a score of 680 or better to approve you for a HELOC.\nHow to Improve Your Credit Score\n--------------------------------\nTo get approved for a loan with the best possible interest rate and terms, take time to get your credit score in good shape if it isn't already. Here are a few tips on how to get your credit where it needs to be and keep it there:\n*   Make all your debt payments on time. Payment history is the most important factor in your credit score, so paying on time is crucial to maintaining a good score.\n*   Check your credit reports and dispute any inaccurate information.\n*   Make sure you're not using more than 30% of your available revolving credit.\n*   Don't apply for a lot of credit in a short period of time.\nOnce you're approved for a loan and are getting ready to start your home improvement project, update your monthly budget to include your new loan payments and stick to it. To keep your credit score in good standing, avoid making any late payments.\nIf you don't know where your credit stands, consider getting a free copy of your credit reports and scores from Experian to see what's in your credit file. And if you're considering applying for a credit card or personal loan to finance your home improvement this year, check out Experian's CreditMatchTM marketplace, which can pair you with specialized credit offers based on your credit profile. END