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Most people finance their homes with mortgages; some people often get loans to pay for college. And, of course, lots of people make purchases with credit cards. You can't wait for to receiving credit as a matter of course, however. You must apply for it. And just as you would hesitate to lend money to a stranger, banks, or finance companies will not gift you credit without knowing something about you.

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It used to be that a retailer or bank would have to call each creditor you listed on an application form before they would decide to extend credit to you. Today, they rely on Equifax free credit card reports online.